China Stocks on 3-Session Decline

The Shanghai Composite fell 0.3% to 3,958, while the Shenzhen Component dropped 0.5% to around 13,140 on Monday, marking a third consecutive session of losses as investor sentiment remained sour amid ongoing geopolitical tensions between China and Japan.

In its latest development, Tokyo has sought to de-escalate a growing dispute with Beijing over Taiwan, which had prompted China to advise its citizens to suspend travel to its East Asian neighbor.

The tension arose after Japanese Prime Minister Sanae Takaichi said earlier this month that a Chinese attack on Taiwan could threaten Japan’s security and might prompt a military response.

China’s Premier Li Qiang is reportedly not scheduled to meet Takaichi on the sidelines of this week’s G20 summit in South Africa.

Notable declines were recorded among major companies, including Sungrow Power (-3.2%), AVIC Chengdu Aircraft (-2.7%), Agricultural Bank of China (-1.3%), and BYD (-1.1%).