China Stocks Hit Over 1-Year Low

The Shanghai Composite fell 1.4% to 3,715 on Thursday, while the Shenzhen Component dropped 1.9% to 11,874, with both indices hitting their lowest levels since August 2025 as investors weighed the potential for renewed trade tensions between China and the EU. Brussels is already considering trade measures targeting other industries, including furniture and scooters, while Germany is expected to push for restrictions on chemicals, mechanical engineering products and potentially pharmaceuticals, following last week’s agreement to limit Chinese car exports. However, China viewed the recent agreement as a calculated and one-off concession, while the Chinese state media also warned of a response if the EU introduces new measures. Energy stocks lagged, led by PetroChina (-1.3%) and CNOOC (-1.5%). Technology stocks also fell, including Cambricon Technologies (-4.6%), Zhongji Innolight (-4.1%), Eoptolink Technology (-4.8%) and NAURA Technology (-3.3%).