The Shanghai Composite Index fell 0.7% to 4,055 on Thursday, while the Shenzhen Component slipped 0.4% to 15,651, with both benchmarks snapping a two-day winning streak as investors assessed escalating trade tensions involving China. The US Trade Representative announced plans to impose additional tariffs of up to 12.5% on imports from 60 trading partners, including China, citing alleged failures to curb imports tied to forced labor. The new measures are set to take effect next month.
Tensions were further stoked after the European Union introduced the Industrial Accelerator Act and the Cybersecurity Act, legislation that could effectively bar some Chinese firms from segments of the European market. Beijing vowed to retaliate, amplifying concerns over a broader trade confrontation.
Financial stocks led declines, with shares of Commercial Bank of China down 0.8%, Agricultural Bank of China off 1.4%, and China Construction Bank losing 1.2%. Major names in the new energy and battery space also retreated, including CATL (-1.7%), BYD (-2.0%), and Sungrow Power Supply (-1.1%).
