31.10.202502:41:05UTC+00China Stocks Struggle Amid Weak Factory Data

On Friday, the Shanghai Composite Index decreased by 0.2%, falling below the 3,980 mark, while the Shenzhen Component Index edged down by 0.05% to 13,525. The decline extended from the prior trading session as market sentiment was dampened by disappointing manufacturing data. The sluggish factory activity underscored ongoing Sino-US trade tensions, tepid domestic demand, and a prolonged downturn in the property sector. In a meeting on Thursday, Presidents Xi and Trump reached an agreement in which the U.S. would reduce tariffs on Chinese imports, while China committed to limiting fentanyl exports, increasing purchases of U.S. soybeans, and halting restrictions on rare earth exports. Despite these agreements, the market remained largely unchanged as the outcomes were anticipated. Additionally, profit-taking exerted pressure on mainland stocks, particularly affecting technology and AI-related companies. Notable decliners included Zhongji Innolight, which fell by 4.8%, Eoptolink Technology, down by 5.4%, Foxconn Industrial, dropping by 5.1%, Victory Giant, which decreased by 6.6%, and Cambricon Technologies, which declined by 1.8%.