The Shanghai Composite fell 1% to around 3,860 while the Shenzhen Component dropped 2.3% to 13,050 on Monday, extending losses from the previous session after US President Donald Trump threatened to impose an additional 100% tariff on Chinese goods in response to Beijing’s new export controls on rare earth minerals. China vowed to retaliate if the tariffs are implemented. However, Trump later signaled openness to negotiate ahead of a possible meeting with President Xi Jinping later this month, saying that trade relations with China “will all be fine.” High-growth technology and new energy stocks led the decline, with Luxshare Precision, Eoptolink Technology, Zhongji Innolight, Contemporary Amperex, and Sungrow Power dropping between 2.4% and 5.4%. Meanwhile, investors awaited China’s September trade data for further clues on the impact of escalating trade tensions.
