The Shanghai Composite declined 0.36% to close at 3,370 on Thursday, trimming gains from the prior session and mirroring overnight losses on Wall Street after the U.S. Federal Reserve indicated fewer interest rate cuts in 2025.
China stocks fall following Wall Street decline
The Fed now anticipates just two rate reductions next year, a sharp shift from the four cuts projected in September. On the domestic front, investors continued to evaluate China’s economic outlook following Beijing’s pledge of additional policy support for 2025. The measures are expected to include further rate cuts, reductions in banks' reserve requirements, and enhanced fiscal initiatives.
Major companies among largest decliners
Significant declines were recorded among major companies, including Hytera Communication (-0.8%), Yonghui Superstores (-8.9%), Wintime Energy Group (-3.5%), Shanghai Fortune (-4.7%), and Guangdong Advance (-4.8%).
