FX.co ★ China Stocks Fall on New US Tariffs

On Friday, the Shanghai Composite Index dropped by 0.3% to approximately 3,840, and the Shenzhen Component Index declined by 0.7% to 13,350. This downturn ended a two-day upward trend following US President Donald Trump's announcement of a 100% tariff on pharmaceutical imports, a 25% duty on heavy trucks, and tariffs reaching up to 50% on furniture. The market experienced pressures from investors taking profits on high-performing technology stocks, fueled by uncertainties regarding the viability of the artificial intelligence sector. Additionally, trading was generally muted in anticipation of the upcoming National Day holidays. Investors are now looking towards industrial profit figures and Purchasing Managers' Index (PMI) data due next week for new insights into the state of China’s economy, the second largest globally. Technology companies led the market retreat, which included significant losses from IEIT Systems, down 4.2%, Luxshare Precision, down 3.1%, Zhongji Innolight, down 3.8%, Victory Giant, down 1.8%, and Foxconn Industrial, down 4.4%.