2026.10.1502:02:52UTC+00China Stocks Hit Over 1-Year Low

The Shanghai Composite Index declined 1.4% to 3,715 on Thursday, while the Shenzhen Component Index lost 1.9% to close at 11,874. Both benchmarks slid to their lowest levels since August 2025 as investors assessed the risk of renewed trade frictions between China and the European Union.

Brussels is reportedly weighing further trade measures targeting additional sectors such as furniture and scooters. Germany is also expected to advocate curbs on chemicals, mechanical engineering products and potentially pharmaceuticals, building on last week’s agreement to limit Chinese car exports to the EU.

Beijing, however, has framed the recent car export deal as a calculated, one-off concession rather than a broader shift in trade policy, and Chinese state media have cautioned that China will respond if the EU proceeds with new restrictions.

On the corporate front, energy shares underperformed, with PetroChina down 1.3% and CNOOC off 1.5%. Technology stocks also retreated, including Cambricon Technologies (-4.6%), Zhongji Innolight (-4.1%), Eoptolink Technology (-4.8%) and NAURA Technology (-3.3%).