FX.co ★ Chinese Stocks End the Week Higher

The Shanghai Composite Index increased by 0.7%, closing at 3,535, while the Shenzhen Component Index gained 0.4%, ending at 10,914 on Friday. This marked a continuation of upward momentum for mainland stocks, reaching new multi-month highs as a result of Beijing's initiatives to address competitive pricing tactics, which have positively influenced market sentiment. Additionally, both Shanghai and Shenzhen indices recorded advancements of 0.7% and 2% respectively over the week, achieving a fourth consecutive weekly growth. China's leadership has pledged to curb aggressive price reductions to confront deflation concerns, with UBS predicting a more extensive crackdown on excessive competitive behaviors moving forward. Analysts caution that this initiative may encounter more intricate coordination challenges compared to the state-owned enterprise-driven efforts of the 2015–16 period. Furthermore, the Chinese government has committed to stricter oversight in the electric vehicle (EV) sector, focusing on unreasonably low pricing and cost-related pressures. However, the market gains were somewhat tempered by the announcement of a substantial 93.5% anti-dumping duty imposed by the U.S. on Chinese graphite, raising alarm over potential disruptions in the EV supply chain. Prominent gainers in the corporate space included Contemporary Amperex, which rose by 2.2%, Zhongji at 2%, Naura by 1.9%, and Jiangsu at 1.8%.