FX.co ★ China Stocks Struggle as Trade Tensions Weigh

On Thursday, the Shanghai Composite inched up by 0.1%, concluding at 3,916, while the Shenzhen Component slightly decreased by 0.25% to settle at 13,086. This movement reflects the cautious mood in the market due to persistent US-China trade tensions. President Donald Trump confirmed the ongoing trade conflict with China; however, Treasury Secretary Bessent suggested the current truce might be extended if China refrains from implementing new export controls on rare earth minerals. While US trade officials criticized these controls for posing a threat to global supply chains, China defended its position. Investors are now looking ahead to the forthcoming Fourth Plenum for potential new policy directions. In the corporate sector, technology stocks saw a rise following TSMC’s robust earnings, which underscored the continued strong demand for AI chips. Noteworthy increases were seen in Luxshare Precision at 1.7%, Zhongji Innolight at 3.6%, and Cambricon Technologies at 2.6%.