2025.08.0102:56:56UTC+00China Stocks Struggle as Factory Activity Contracts

On Friday, the Shanghai Composite and Shenzhen Component indexes exhibited uncertainty following an unexpected downturn in manufacturing activity, which negatively affected market sentiment. A private survey indicated that factory production reverted to contraction in July, contrary to predictions of a second successive month of growth amid ongoing global trade unpredictability. Although trade discussions between U.S. and Chinese officials concluded in Stockholm earlier this week, President Donald Trump has not yet sanctioned an extension of the current tariff ceasefire. Further contributing to the downbeat atmosphere, the recent Politburo meeting fell short of investors' expectations by failing to introduce significant stimulus measures to address deflationary challenges or invigorate economic growth. Technology stocks were particularly impacted, with Eoptolink Technology declining by 1.3%, Zhongji Innolight by 1.1%, and Dosilicon Co by 5.2%.