FX.co ★ China Stocks Mixed Despite Strong GDP Data

On Tuesday, the performance of Chinese stocks exhibited variability. The Shanghai Composite experienced a modest decline of 0.2%, settling around 3,510, while the Shenzhen Component edged up by 0.4%, reaching 10,730. Market participants assessed a series of economic reports that delivered a nuanced view of the economic recovery. China's economy grew by 5.2% year-on-year in the second quarter, slightly surpassing analysts' expectations of 5.1%, albeit showing a slowdown compared to the 5.4% growth observed in the preceding two quarters. Industrial production for June exceeded predictions, indicating strength in the manufacturing sector. In contrast, retail sales growth lagged behind forecasts, indicating potential challenges in consumer demand. On the international stage, U.S. President Donald Trump expressed willingness to reinitiate tariff discussions with the European Union and other significant trading partners. At the individual stock level, declines were noted in companies such as China Northern Rare Earth, which dipped by 0.6%, and Hebei Changshan, which fell by 10%. Meanwhile, technology stocks showed strong performance, highlighted by substantial gains in Zhongji Innolight, which soared 14.4%, and Eoptolink Technology, which increased by 20%.