The Shangai Composite Index Closes 1.37% Lower

The Shangai Composite Index fell 57 points or 1.37 percent on Tuesday to close at 4106 points. Leading the losses are China Molybdenum (-9.98%), Zijin Mining (-9.00%) and Aluminum Corporation of China (-7.61%).

The Shanghai Composite dropped 1.37% to close at 4,106 on Monday, while the Shenzhen Component slumped 3.17% to 15,854, with both benchmarks retreating from a one-month high and an over eleven-year peak, respectively, tracking overnight losses on Wall Street amid pressure on technology stocks. Major US tech stocks fell broadly as investors grew wary that the sector’s prolonged rally may have become overstretched. Chinese technology sector also traded lower, including Zhongji Innolight (-5.23%), Eoptolink Technology (-4.82%), and Victory Giant Technology (-7.44%). In contrast, financial stocks outperformed, particularly Industrial and Commercial Bank of China (2.5%) and Agricultural Bank of China (2.66%). On the economic front, China’s cumulative fiscal deficit narrowed for the first time in more than two years, with the combined shortfall across its two main government budgets falling to 3.16 trillion yuan in January–May despite weak domestic demand and sluggish economic growth.

The Shangai Composite Index gained 74 points or 1.81 percent on Monday to close at 4164 points. Gains were led by New China Life (10.01%), Sanan Optoelectron (9.98%) and Hengli Petrochemical (8.77%).