FX.co ★ China Stocks Gain for Second Session

The Shanghai Composite index increased by 0.3% to approximately 3,825, while the Shenzhen Component rose by 0.2% to 12,610 on Monday, marking a second consecutive day of gains due to improved risk appetite. Last week, Chinese stocks had declined following reports indicating that regulators were contemplating cooling measures for the market's notable rally. These measures may include easing short-selling restrictions and intensifying scrutiny on speculative trading. Market sentiment received a further boost after the People’s Bank of China committed to injecting 1 trillion yuan into the banking system through outright reverse repo operations. Looking forward, investors are keen to review China’s August trade data to evaluate the impact of evolving trade dynamics with the United States. Among the significant gainers were Singrow Power, up by 3.2%; Wuxi Lead Intelligent, up by 3.8%; Contemporary Amperex, up by 1.6%; Luxshare Precision, which surged by 5.9%; and Wolong Electric, up by 1.4%.