Chinese Stocks Plunge Amid Economic and Geopolitical Uncertainty
Chinese stocks tumbled to new lows on Monday as economic recovery concerns and geopolitical tensions impacted investor sentiment. The blue-chip CSI 300 fell 0.04%, while the Shanghai Composite dropped 0.15%. Despite expanded services activity in December, growing trade risks continue to weigh on market outlook.

Chinese stocks sharply declined on Monday, hitting fresh three-month lows. This decrease occurred despite regulatory meetings with foreign investors, as both economic recovery concerns and geopolitical tensions continued to dampen market sentiment.
During midday trading, the blue-chip CSI 300 index slipped by 0.04% to its lowest level since September 27. Similarly, the Shanghai Composite index saw a decline of 0.15%, reaching 3,206.75 points. Consumer staples suffered a 1.26% loss, with real estate down 0.63%, contributing to the broader onshore decline.
In Hong Kong, the benchmark Hang Seng Index fell 0.27% to 19,706.66. Investors remain wary of China's economic recovery and complex geopolitical landscape, despite a December expansion in services activity. Advisors from Bank of America warned of ongoing trade, supply chain, and economic growth uncertainties for 2025, urging a defensive market strategy.
(With inputs from agencies.)
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