FX.co ★ China Stocks Dip Amid Global Market Weakness

Chinese stocks declined slightly on Thursday, with the Shanghai Composite falling 0.1% to 3,384 and the Shenzhen Component dropping 0.2% to 10,270, interrupting a two-day winning streak for mainland markets. This dip was part of a broader retreat in global markets amid increasing concerns regarding the fiscal outlook of the United States. Investor sentiment was negatively impacted by worries that President Donald Trump’s proposed tax legislation—expected to increase US debt by over $3 trillion—could lead to financial instability and affect global risk tolerance. Domestically, the People's Bank of China responded earlier in the week by reducing key lending rates for the first time in seven months to foster growth and counter risks arising from global trade tensions. Additionally, major state-owned banks lowered deposit rates to alleviate pressure from shrinking interest margins. Notable declines were seen among prominent companies, such as Contemporary Amperex, which fell 1.5%, Hongbaoli Group, down 4.8%, and Guizhou Zhongyida, which experienced a 7.5% drop.