FX.co ★ China Stocks on 3-Session Decline

The Shanghai Composite Index declined by 0.3%, settling at 3,958, while the Shenzhen Component Index fell by 0.5% to approximately 13,140 on Monday. This marks the third straight session of losses, driven by continued negative investor sentiment due to escalating geopolitical tensions between China and Japan. Recently, Tokyo has taken steps to ease the escalating dispute with Beijing concerning Taiwan, leading China to advise its citizens against traveling to Japan. The dispute was fueled by remarks from Japanese Prime Minister Sanae Takaichi, who stated earlier this month that a potential Chinese military action against Taiwan could endanger Japan's security and might necessitate a military response. It is reported that Chinese Premier Li Qiang is not expected to meet with Takaichi during the G20 summit in South Africa this week. Significant losses were observed among leading firms, such as Sungrow Power, which decreased by 3.2%, AVIC Chengdu Aircraft, down by 2.7%, Agricultural Bank of China, which dropped by 1.3%, and BYD, with a decline of 1.1%.