09.09.202507:22:18UTC+00China Stocks Fall as Regulatory Concerns Linger

On Tuesday, the Shanghai Composite index decreased by 0.5% to 3,807, while the Shenzhen Component index saw a decline of 1.23% to 12,511. This downturn ended a two-day series of gains for mainland equities, as regulatory uncertainties dampened investor sentiment. The markets previously faced pressure from profit-taking activities and speculations about new measures that authorities might implement to curb excessive speculation. However, indices had bounced back in recent trading sessions since analysts suggested that any forthcoming regulatory measures were unlikely to be as stringent as those from 2015. Current levels of fund inflows and margin financing remain robust. On the economic side, August saw a 4.4% growth in exports, marking the slowest increase in six months, significantly affected by a 33% drop in shipments to the US, owing to tariff pressures. Selling pressure was notably present in the technology and new energy sectors, leading to significant losses for companies such as Zhongji Innolight (-2.9%), Victory Giant (-5.1%), Wuxi Lead Intelligent (-2.3%), Sungrow Power (-5.2%), and Contemporary Amperex (-1.7%).