FX.co ★ Chinese Stocks Slip on Risk-Off Mood

The Shanghai Composite index edged down by 0.2%, settling at approximately 3,905, while the Shenzhen Component fell by 0.6% to reach 13,070 on Tuesday. This marked a halt to a three-day winning streak for mainland stocks as a cautious sentiment prevailed in the market. The downturn was largely influenced by disappointing domestic manufacturing data, highlighted by a private survey indicating continued contraction in factory activity for November. While there is speculation about potential stimulus measures, uncertainty surrounding the timing and effectiveness of such policy support has caused many investors to remain cautious. Adding to the market's anxiety was renewed stress within the property sector, exemplified by reports that Vanke is seeking a one-year extension for an impending bond repayment. Broader global economic concerns, including escalating bond yields and a decline in cryptocurrency values, further contributed to investor wariness. Leading the declines, major banking institutions such as the Agricultural Bank of China saw a decrease of 0.3%, while China Construction Bank and Bank of China experienced drops of 0.6% and 0.7% respectively. Other significant losses were observed in companies like Contemporary Amperex, which fell by 0.7%, Zijin Mining with a decrease of 0.9%, and Cambricon Technologies which declined by 1.1%.