China Stocks Retreat on Trade Headwinds

2026-06-04 02:02 By Czyrill Jean Coloma 1 min. read

The Shanghai Composite fell 0.7% to 4,055 on Thursday, while the Shenzhen Component lost 0.4% to 15,651, with both benchmarks snapping a two-session gain as investors weighed mounting trade tensions involving China.

The US Trade Representative announced plans for additional tariffs of up to 12.5% on imports from 60 trading partners, including China, over alleged failures to prevent imports linked to forced labor, with the measures due to take effect next month.

Adding to trade tensions, the EU introduced the Industrial Accelerator Act and the Cybersecurity Act, measures that could effectively shut some Chinese firms out of parts of the European market.

Beijing vowed retaliatory measures, heightening fears of a wider trade confrontation between the two sides.

Financial stocks led the losses, particularly Commercial Bank of China (-0.8%), Agricultural Bank of China (-1.4%), and China Construction Bank (-1.2%).

CATL (-1.7%), BYD (-2.0%), and Sungrow Power Supply (-1.1%) also declined.



News Stream
China Stocks Retreat on Trade Headwinds
The Shanghai Composite fell 0.7% to 4,055 on Thursday, while the Shenzhen Component lost 0.4% to 15,651, with both benchmarks snapping a two-session gain as investors weighed mounting trade tensions involving China. The US Trade Representative announced plans for additional tariffs of up to 12.5% on imports from 60 trading partners, including China, over alleged failures to prevent imports linked to forced labor, with the measures due to take effect next month. Adding to trade tensions, the EU introduced the Industrial Accelerator Act and the Cybersecurity Act, measures that could effectively shut some Chinese firms out of parts of the European market. Beijing vowed retaliatory measures, heightening fears of a wider trade confrontation between the two sides. Financial stocks led the losses, particularly Commercial Bank of China (-0.8%), Agricultural Bank of China (-1.4%), and China Construction Bank (-1.2%). CATL (-1.7%), BYD (-2.0%), and Sungrow Power Supply (-1.1%) also declined.
2026-06-04
The Shangai Composite Index Closes 0.33% Higher
The Shangai Composite Index went up by 14 points or 0.33 percent on Wednesday to close at 4089 points. The rise was led by Shanghai Petrochemical (10.04%), China Coal (4.09%) and Huatai Securities (2.79%). On the downside, the weakerst performers were Greenland Holdings (-4.05%), China Fortune (-3.94%) and China Eastern Airlin (-3.84%).
2026-06-03
China Stocks Extend Gains
The Shanghai Composite rose 0.22% to close at 4,083 on Wednesday, while the Shenzhen Component gained 0.73% to 15,705, with both benchmarks extending their previous-session advances as semiconductor and technology stocks continued to underpin market sentiment. Leading the gains were Cambricon Technologies (6.01%), SMIC (1.15%), Zhongji Innolight (6.98%), Eoptolink Technology (4.72%), and NAURA Technology (2.0%). Investors largely brushed aside concerns over elevated valuations in AI-related shares, encouraged by expectations of robust earnings growth. On the economic front, a private survey showed China's Composite PMI climbed to a three-month high of 54.0 in May, mainly supported by the services PMI, which also reached a three-month peak of 54.4. However, the manufacturing PMI fell to 51.8 from April's five-year high of 52.2, highlighting the uneven nature of the country's economic momentum.
2026-06-03