China Stocks Experience Third Consecutive Decline Amid Profit-Taking
The Chinese stock market experienced its third consecutive decline, with the Shanghai Composite and Shenzhen Component falling by 0.2% and 0.6%, respectively. Investors engaged in profit-taking amid a lack of specifics on a government plan to stimulate consumer spending, coupled with concerns over upcoming US tariffs. Technology stocks particularly suffered losses, leading to a bearish outlook for the week.
The Shanghai Composite Index decreased by 0.2% to approximately 3,400, while the Shenzhen Component fell by 0.6% to 10,810 on Friday. This decline marks the third consecutive session of losses, as investors opted for profit-taking.
Earlier in the week, the Chinese government unveiled a special action plan aimed at increasing consumer spending, yet the lack of specific details left investors wanting. Additionally, the People’s Bank of China chose to maintain key lending rates, which failed to provide the necessary momentum for a market increase.
Investor sentiment was further affected by the impending April 2 deadline regarding the reciprocal tariffs imposed by US President Donald Trump on nations that have levied tariffs on American goods. This uncertainty weighed heavily on market performance.
Technology stocks experienced significant decreases, with notable drops including BYD Company (-4.7%), Talkweb Information (-5.9%), Merit Interactive (-3.6%), Jiangsu Hoperun (-4.9%), and Shanghai Stonehill (-5.6%).
With both the Shanghai and Shenzhen indexes set to conclude the week on a downward trend, market participants remain cautious amid evolving economic indicators and political developments.
In conclusion, the Chinese stock market faced a decline for the third consecutive session, influenced by uncertainty surrounding government initiatives and external trade relations. Despite the announcement of a plan to boost consumer spending, investor confidence remained low. Significant losses in technology stocks further contributed to the market’s downturn, leaving both major indexes positioned to end the week lower.
Original Source: www.tradingview.com
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