FX.co ★ Shanghai Stocks Flat After 9-Day Rally

The Shanghai Composite remained unchanged at 3,965, breaking a nine-day rising streak as investors cashed in on gains after its strongest performance in over a year. Meanwhile, the Shenzhen Component gained 0.5%, closing at 13,560. For the year, the Shanghai Composite is poised to increase by approximately 18%, marking its best annual performance since 2019, while the Shenzhen Component is expected to rise significantly by 30%, continuing its bullish trend from 2024. Investors continued to focus on geopolitical issues, particularly the implications of China's military exercises near Taiwan. Additionally, market participants are anticipating economic indicators, with both official and private PMI figures set to be released this week. Technology stocks showed broad gains, led by Cambricon Technologies (+3.3%), NAURA Technology (+2.1%), and SMIC (+1.8%). Conversely, the real estate and healthcare sectors fell by 2.3% and 0.5%, respectively. The defense sector also saw a decline of 0.6%, ending its four-day winning streak.