03.11.202502:26:55UTC+00China Stocks Extend Losses for Third Day

The Shanghai Composite Index decreased by 0.2% to fall below the 3,950 mark, while the Shenzhen Component Index saw a 1% decrease, settling at 13,250 as of Monday. This marked the third consecutive session of declines in mainland stocks, largely attributed to underwhelming factory activity data that clouded economic prospects. A private survey indicated that China’s manufacturing sector expansion in October was slower than anticipated, amid escalating Sino-US trade tensions during the same period. In a development over the weekend, the White House announced that China would temporarily halt new export restrictions on rare earth elements and conclude investigations into American semiconductor companies. This action was part of an agreement wherein the US would pause the imposition of certain tariffs and cancel a proposed 100% tariff on Chinese imports. This move follows the significant Trump-Xi meeting aimed at improving bilateral relations. The downturn was primarily driven by shares linked to technology and artificial intelligence, with companies such as Zhongji Innolight, Victory Giant, and Wuxi Lead Intelligent experiencing losses ranging from 2% to 8%.