FX.co ★ China Stocks Slip on Market Caution

The Shanghai Composite index declined by 0.3% to slip below the 3,380 mark, while the Shenzhen Component decreased by 0.2% to settle at 10,145 on Tuesday. This downturn retraced some of the gains made in the previous session as investors adopted a cautious stance amid heightened scrutiny of global trade and geopolitical dynamics. The market sentiment was dampened by a draft statement from the G7, which outlined plans to bolster critical mineral supply chains as a countermeasure to China's export restrictions. Geopolitical tensions intensified following statements from former U.S. President Donald Trump advocating a full evacuation of Tehran amidst ongoing Israeli airstrikes, coupled with his reiterated criticism of Iran for dismissing a proposed nuclear deal. Domestically, investors are closely monitoring anticipated policy announcements from the People’s Bank of China scheduled for later this week, with prevailing expectations that loan prime rates will hold steady. Among the notable decliners were Beijing Enlight, which dropped by 1.6%, Zhongji Innolight, declining by 1.9%, and Eoptolink Technology, which saw a decrease of 1.1%.