FX.co ★ China Stocks Mixed Amid Trump Tariff Threats

On Tuesday, the Shanghai Composite saw a slight decline of 0.3%, settling around 3,870, while the Shenzhen Component managed a modest rise of 0.3% to reach 12,480. The performance of mainland stocks was mixed, primarily influenced by resurging trade tensions. Reports have emerged that US President Donald Trump threatened to levy "200% tariffs or something similar" on China if it does not supply rare-earth magnets to the United States. Despite these latest geopolitical strains, Chinese equities have experienced a robust surge this month, with the Shanghai index reaching its highest point since 2015. Analysts attribute some of this momentum to the redirection of China's household savings, totaling 160 trillion yuan, from real estate investments to the equities market, especially favoring tech-centric sectors like semiconductors and renewable energy. Sectoral trading displayed variability; notable declines were observed in China Northern Rare Earth, down 4%, and Cambricon Technologies, down 3.4%. Conversely, Suzhou TFC and Takweb Information recorded strong gains, advancing by 17.5% and 10%, respectively.