Chinese stocks declined on Monday, with the Shanghai Composite slipping 0.21% to 3,324 and the Shenzhen Component falling 1.91% to 10,544, reversing earlier gains despite fresh policy support from Chinese regulators.
China stocks slip despite fresh policy support
The securities regulator announced new guidelines encouraging listed companies to enhance shareholder returns through strategies like mergers and acquisitions, employee stock incentive plans, cash dividends, and share buybacks.
However, investor sentiment remained cautious ahead of China’s upcoming Loan Prime Rate (LPR) decision later this week, with markets widely expecting the one-year and five-year LPRs to hold steady at 3.1% and 3.6%, respectively.
Seres and iFLYTEK among worst performers
Major decliners included prominent firms such as Seres Group (-5.1%), 360 Security Technology (-5.9%), iFLYTEK (-8.9%), Hithink Royalflush (-2.3%), and Jiangsu Hoperun (-6.6%), reflecting broader concerns over economic growth and policy impact.
