China's Stocks Struggle Amid Policy Uncertainty and Global Tensions

China stocks wavered on Wednesday as investors awaited policy announcements from Beijing's key leadership meeting. Sentiment suffered from slower-than-expected economic growth in the second quarter. Market uncertainty was further fueled by concerns about U.S.-China relations under a potential Trump administration. Various indexes showed mixed performance in response.

China stocks struggled for momentum on Wednesday, with major indexes trading in narrow ranges, as investors awaited policy news from a key leadership gathering in Beijing expected to conclude on Thursday. Market sentiment was dampened by data showing slower-than-anticipated economic growth in the second quarter.

Adding to the uncertainty, market participants voiced concerns that China will be a central focus in Donald Trump's foreign policy if he wins the U.S. presidential race. Trump's choice of J.D. Vance as his vice-presidential running mate indicates a likely tough stance on China, reflecting the belief that China's economic rise has harmed U.S. manufacturing.

With business and consumer sentiment at near record lows, the upcoming Communist Party plenum aims to boost confidence in the world's second-largest economy. However, balancing goals of growth with debt reduction may impede substantial policy shifts. The Shanghai Composite index was down 0.34% at midday, with other indexes showing varied performance.

(With inputs from agencies.)