FX.co ★ China Stocks Slip on Profit-Taking

The Shanghai Composite index experienced a slight decline of 0.1%, settling at approximately 3,555, while the Shenzhen Component fell by 0.3% to 10,970 on Tuesday. This movement ends a streak of three consecutive days of gains, as investors opted to lock in profits amidst ongoing uncertainties in global trade. U.S. Treasury Secretary Scott Bessent stated on Monday that the Trump administration is placing a higher priority on the quality of trade agreements rather than the speed of their completion. President Donald Trump is expected to decide on whether to extend the deadline for trade negotiations beyond the current date of August 1. In another development, the People's Bank of China maintained key lending rates at historically low levels on Monday, aiming to bolster the economy facing challenges such as subdued consumer sentiment and slowing growth. Furthermore, China’s Ministry of Industry and Information Technology has committed to supporting growth across key sectors, including machinery, automobiles, electrical equipment, steel, nonferrous metals, petrochemicals, and construction materials. Among notable declines, China Northern Rare Earth fell by 1.9%, Victory Giant decreased by 2.6%, and Hudian New Energy saw a drop of 4.4%.