FX.co ★ China Stocks Fall on Profit-Taking

On Tuesday, the Shanghai Composite Index declined by 0.64% to finish at 4,139, while the Shenzhen Component Index decreased by 1.37% to close at 14,169. This downturn marks a retreat from multi-year highs in mainland equities, driven by profit-taking in sectors such as defense and technology. Following their surge to record levels, shares of defense and commercial space companies experienced significant corrections. Notable declines included China Aerospace, China Satellite, and Addsino Co, each plummeting by 10%. The technology sector also saw a pullback, with companies linked to artificial intelligence like Zhongji Innolight, Shenzhen Sunway, and Eoptolink Technology facing drops of 1.1%, 10.8%, and 2.1%, respectively. In parallel developments, a debt advisory firm called on bondholders of China Vanke Co.'s dollar-denominated notes to consider declaring these bonds in default, highlighting ongoing financial concerns surrounding the developer. Additionally, investors are anticipating the release of upcoming Chinese trade data, which is expected to provide further insights into the health of the world's second-largest economy.