FX.co ★ China Equities Dip for 3rd Session

The Shanghai Composite dropped 14 points, or 0.3%, reaching 3,958 in early trading on Tuesday. Concurrently, the Shenzhen Component experienced a modest decline, settling at 13,188. Both indexes marked their third consecutive session of losses as tensions in the Taiwan Strait intensified, with Beijing dismissing the possibility of dialogue with Tokyo at the forthcoming G20 summit in South Africa. Across most sectors, a cautious atmosphere prevailed in anticipation of China's crucial monthly lending rate announcement later this week, after the People's Bank of China opted to maintain rates at historically low levels in October. Additionally, weaknesses in U.S. markets exerted pressure, stemming from concerns about Nvidia's potential earnings amid high AI valuations and uncertainty regarding the Federal Reserve's interest rate direction, as Vice Chair Philip Jefferson highlighted potential downside risks to the labor market. Among the notable decliners were Agricultural Bank of China, shedding 1.8%, Foxconn Industrial Internet, down 1.4%, and Luxshare Precision Industry, falling 1.1%. Conversely, Cambricon Technology rose by 1.8%, Hygon Information Technology gained 1.0%, and Kweichow Moutai increased by 0.8%.