FX.co ★ China Stocks Slip on Weak Sentiment

On Tuesday, the Shanghai Composite index decreased by 0.5%, falling below the 4,120 mark, while the Shenzhen Component index declined by 0.7% to 12,216. This decline extended the losses from the previous day, as investors in the mainland found little new impetus to drive market momentum. Market sentiment was further dampened by ongoing regulatory tightening, with authorities cracking down on market manipulation and high-frequency trading. Additionally, there was an increase in margin requirements, reflecting an overarching strategy to mitigate risks in the capital market. In economic news, industrial profits in China showed a modest increase of 0.6% year-over-year in 2025, predominantly driven by private and foreign-invested enterprises. Conversely, state-owned companies continued to experience challenges. Among individual stocks, significant losses were observed in TBEA Co (-4.7%), CMOC Group (-0.9%), China Spacesat (-1.8%), Contemporary Amperex (-1.8%), and Montage Technology (-1.1%).