FX.co ★ China Stocks Fall for 5th Straight Session

On Wednesday, the Shanghai Composite declined slightly by 0.05% to dip below 3,340, while the Shenzhen Component fell by 0.1% to 10,020. This marks the fifth consecutive session of losses for mainland stocks, primarily driven by persistent uncertainties surrounding Sino-US trade relations. Despite an agreement between China and the US to maintain communication following discussions between senior officials last week, markets were disheartened by the absence of tangible progress towards a comprehensive trade pact. Earlier in the week, official data indicated an increase in China's industrial profits for April, highlighting policy measures implemented to shield the economy from the adverse effects of elevated US tariffs. In the corporate realm, Chinese electric vehicle (EV) stocks experienced downward pressure due to mounting concerns about a potential price war and increasing regulatory scrutiny. Significant declines were observed among companies such as BYD Company (-1.7%), Eoptolink Technology (-26%), China Greatwall (-5%), Anhui Jianghuai Automobile (-3.8%), and Kunlun Tech (-5.7%).