China Stocks Edge Higher as Weak PMI Fuels Stimulus Hopes

The Shanghai Composite rose 0.2% to around 3,430 on Monday, snapping a two-day losing streak, as weak manufacturing data fueled expectations of additional stimulus. Official figures showed that China’s manufacturing activity contracted for the third consecutive month in June, as firms contended with an intensifying price war and weak consumer demand, compounded by higher US tariffs. In contrast, growth in the non-manufacturing sector, which includes services and construction, accelerated to a three-month high. On the trade front, Beijing announced Friday that it had finalized a new agreement with Washington. Under the deal, China will review export applications for items covered by export control rules, while the US has agreed to roll back a range of restrictive measures against Chinese entities. Notable gainers in the session included Zhongji Innolight (+6.7%), Eoptolink Technology (+5.5%), Shenzhen Forms (+2.1%), Hengbao Co (+10%), and Luxshare Precision (+2.7%).