FX.co ★ China Stocks Rebound on Dip Buying

On Monday, the Shanghai Composite Index increased by 0.66% to reach 3,583, while the Shenzhen Component Index appreciated by 0.46% to settle at 11,042. This upturn was largely driven by investors buying at lower prices following a recent decline. The act of bargain hunting bolstered market sentiment, although concerns arise from an apparent slowdown in momentum, as last week's Politburo meeting failed to deliver substantial new stimulus measures to counteract the challenges of sluggish economic growth and deflationary pressures, dampening expectations for stronger policy interventions. Market participants also closely monitored trade relations, particularly the ongoing US-China tariff ceasefire, which is due for renewal before its expiration on August 12. Upcoming data on trade and inflation might shed more light on the initial impact of this tentative agreement. In terms of notable market performers, Contemporary Amperex saw a 1.3% increase, while Dosilicon Co and Hybio Pharmaceuticals both surged by 20%.