China Stocks Rebound, Still Set for Weekly Decline

The Shanghai Composite rose 0.4% to 3,722 on Friday, while the Shenzhen Component gained 0.6% to 11,891, with both indices rebounding from more than one-year lows hit in the previous session as investors took a breather after a prolonged selloff. Still, concerns over renewed China-EU trade tensions persisted as the bloc weighs new powers to restrict access to its single market and assesses import data for potential surges, a first step toward imposing quotas on additional goods. China has warned of retaliation against new EU trade measures or discriminatory restrictions targeting its companies or products beyond the hybrid vehicle export cap agreed last week. AI-related stocks led the rebound as selling pressure eased, including Cambricon Technologies (1.4%), Hygon Information Technology (1.1%), Zhongji Innolight (2.2%), Eoptolink Technology (2%) and Victory Giant Technology (1.1%). For the week, both indices remained on track for a fourth consecutive weekly decline.