Shanghai and Shenzhen stocks hit lowest levels since August 2025 amid China-EU trade concerns
Updated
Summary
On Thursday, the Shanghai Composite fell 1.4% to 3,715 and the Shenzhen Component dropped 1.9% to 11,874. Both indices reached their lowest levels since August 2025 as investors weighed the potential for renewed trade tensions between China and the EU.
Why it matters
The trade backdrop includes last week’s agreement to limit Chinese car exports. Brussels is considering measures affecting other industries, including furniture and scooters; Germany is expected to push for restrictions on chemicals, mechanical engineering products and potentially pharmaceuticals. China viewed the car-export agreement as a calculated, one-off concession, while Chinese state media warned of a response if the EU introduces new measures.
Energy stocks lagged, with PetroChina down 1.3% and CNOOC down 1.5%. Technology stocks also fell: Cambricon Technologies declined 4.6%, Zhongji Innolight 4.1%, Eoptolink Technology 4.8% and NAURA Technology 3.3%.