02.09.202507:25:31UTC+00China Stocks Fall on Profit-Taking

The Shanghai Composite fell by 0.45% to 3,858, while the Shenzhen Component dropped significantly by 2.14% to 12,554 on Tuesday, breaking a three-day upward trend as investors sought to realize their gains. Market participants closely observed developments at the Shanghai Cooperation Organization (SCO) summit in Tianjin, where China aimed to assert its role as a global mediator amid persistent trade disputes and geopolitical challenges. During the summit, President Xi Jinping unveiled plans to establish an SCO development bank, introduce a collaborative platform for green and energy industries, and committed USD 1.4 billion in loans over the forthcoming three years. Additionally, a private survey published on Monday indicated that China's manufacturing activity rebounded in August, unexpectedly returning to an expansion phase due to a boost in new orders and export demand. Stocks in the artificial intelligence and semiconductor sectors witnessed a downturn, with Eotolink Technology experiencing a 7.8% drop, Zhongji Innolight decreasing by 5.4%, and Suzhou TFC falling by 10.3%.