The Shangai Composite Index Closes 0.67% Lower

The Shangai Composite Index dropped 25 points or 0.67 percent on Thursday to close at 3656 points. Losses were led by Zijin Mining (-3.88%), China Molybdenum (-2.84%) and SAIC Motor (-2.82%). Offsetting the fall, top gainers were Avic Shenyang Aircraft (1.89%), ICBC (1.76%) and Bank Of China (1.58%).

The Shanghai Composite fell 0.67% to close at 3,655.8 on Thursday, while the Shenzhen Component dropped 1.68% to 11,198, both retreating from the previous session as investors were underwhelmed by the PBoC’s measures to support domestic demand and growth. The PBoC said it would maintain a flexible, targeted and forward-looking monetary policy, keeping liquidity ample and financing conditions accommodative while aligning money and credit growth with economic expansion and price stability goals. It also pledged greater structural support for domestic demand, technological innovation, small businesses and key infrastructure, while diversifying loan interest rate benchmarks beyond the loan prime rate. Adding to the negative sentiment, concerns over a potential leadership change at Nvidia further weighed on the already fragile AI trade. Notable decliners included Foxconn Industrial Internet (-4.85%), Zijin Mining Group (-3.88%), CATL (-2.70%), BYD (-2.10%) and Zhongji Innolight (-6.11%).

The Shangai Composite Index went up by 19 points or 0.51 percent on Wednesday to close at 3682 points. The rise was led by Petrochina (1.10%), Sanan Optoelectron (1.06%) and Greenland Holdings (0.79%). On the downside, the weakerst performers were China Eastern Airlin (-3.00%), LONGi Green (-2.88%) and Kweichow Moutai (-2.50%).