The Shanghai Composite fell 0.3% to around 3,870 while the Shenzhen Component rose 0.3% to 12,480 on Tuesday, with mainland shares posting mixed performances as renewed trade concerns weighed on sentiment.
US President Donald Trump reportedly threatened to impose “200% tariffs or something” on China if it failed to export rare-earth magnets to the US. Despite the latest tensions, Chinese equities have rallied sharply this month, with the Shanghai index hitting its highest level since 2015.
Analysts note that part of the momentum has been driven by China’s 160 trillion yuan in household savings shifting away from real estate and into equities, particularly in technology-enabled sectors such as semiconductors and renewables.
Trading was mixed across sectors, with notable losses from China Northern Rare Earth (-4%) and Cambricon Technologies (-3.4%), while Suzhou TFC (+17.5%) and Takweb Information (+10%) advanced strongly.
