The Shanghai Composite increased by 0.02% to close at 3,230, while the Shenzhen Component declined by 0.54% to 9,945 on Wednesday. Mainland stocks struggled to gain momentum amid persistent economic and geopolitical uncertainties.
Despite Beijing's new economic pledges, investor confidence in China’s economic prospects remains fragile. Concerns surrounding the upcoming inauguration of US President-elect Donald Trump further dampened market sentiment, notably after he dismissed reports suggesting a shift toward a less aggressive stance on tariffs. In addition, the US placed several Chinese companies on a list of firms with alleged ties to China’s military, heightening tensions between the two nations.
Notable losses were recorded in companies such as East Money (-2%), ZTE Corp (-1.6%), and Contemporary Amperex (-1.7%).
Mainland stocks struggle amid economic and geopolitical concerns
These developments and a cautious market outlook left mainland stocks navigating a turbulent environment with no clear direction. Investors are closely monitoring domestic economic data and the evolving geopolitical landscape for further clues on how these factors might impact the Chinese market in the near term.
