FX.co ★ China Stocks Extend Losses on Cautious Mood

The Shanghai Composite Index decreased by 0.1% to dip below 3,820, while the Shenzhen Component Index diminished by 0.2% to 13,090 on Wednesday. This marks the second consecutive day of declines, largely attributed to the absence of fresh policy initiatives, which has dampened investor sentiment. The market experienced additional pressure from profit-taking activities, particularly affecting the artificial intelligence sector and associated stocks. Despite ongoing signs of economic frailty, Beijing has yet to introduce substantial stimulus measures. However, the central bank has committed to utilizing monetary tools to ensure liquidity and bolster economic activity. On the trade front, U.S. Ambassador to China, David Perdue, indicated on Tuesday that a much-anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping is more likely to occur next year as opposed to this fall. Among the significant decliners were Luxshare Precision, which fell 1.1%, Zhongji Innolight, which slid 2.9%, Victory Giant, down 3.6%, Foxconn Industrial, declining 3.1%, and Wolong Electric, which plunged 8.3%.