China Stocks Dip Amid Weak Economic Recovery and Geopolitical Tensions

China stocks experienced a fifth consecutive decline on Monday. Investors hope for more policy stimulus from forthcoming government meetings as the economic recovery remains weak. Geopolitical tensions and increasing foreign outflows also contribute to the downturn. The Shanghai Composite index fell by 0.53% at midday.

China's stock market fell for a fifth consecutive session on Monday as investors anticipate policy stimulus from upcoming government meetings. Amid a tepid economic recovery and rising geopolitical tensions, the Shanghai Composite index dropped by 0.53% to 2,934.23 at the midday break.

Chinese H-shares listed in Hong Kong decreased by 1.3% to 6,299.23, and the Hang Seng Index fell by 1.34% to 17,561.39. Investors are eagerly waiting for the Third Plenum this month, which will address policies aimed at deepening reforms and promoting modernization.

Last week, a survey indicated that China's services activity expanded at the slowest pace in eight months, with confidence hitting a four-year low in June. This coincided with China's announcement of the next step in its anti-dumping investigation into European brandy imports on the same day the European Commission's provisional tariffs on Chinese electric vehicles took effect. The weak market performance continues despite the Chinese securities regulator's pledge to crack down on financial fraud.

(With inputs from agencies.)