China · Country watch
China-EU Trade Mechanism, Mainland Stocks Fall
China and the EU enhance trade dispute management; mainland stocks hit a 14-month low amid US inflation concerns.
The picture Mixed
China's business conditions are mixed today. The China-EU trade mechanism brings predictability, but mainland stocks fall due to US inflation concerns.
In this briefing CSI 300 Index · Federal Reserve · European Union · China · Brazil · Iran
Regulation
Nothing significant reported today.
Disruption
Nothing significant reported today.
Internal tension
Nothing significant reported today.
Safety & health
Nothing significant reported today.
Companies
Nothing significant reported today.
Markets
Mainland China stocks hit 14-month low on US inflation fears
Stocks in mainland China and Hong Kong slumped as US inflation data raised concerns over potential Federal Reserve interest rate hikes, according to the South China Morning Post Business. The CSI 300 Index dropped 1.7% to 4,147.46, marking a 14-month low. The market sentiment was further affected by a downturn in the South Korean market. Investors are wary of the potential impact of US monetary policy adjustments on Chinese equities.
Impact Investors in Chinese equities face increased volatility as US inflation data influences market sentiment.
Sources: South China Morning Post Business ↗
Trade
China-EU enhance trade dispute management mechanism
China and the European Union have advanced their trade and investment consultation mechanism, achieving 16 outcomes that aim to turn disputes into procedural, trackable matters, according to CGTN Business. Key measures include price undertakings for electric vehicles, advance notice on export controls, and a 'green channel' for rare earths. This development is expected to bring predictability to policy shifts affecting businesses. However, the EU continues to advance protectionist legislation, which may affect future trade dynamics.
Impact Exporters and manufacturers gain predictability in China-EU trade relations, easing policy shift impacts.
Sources: CGTN Business ↗
China boosts Brazilian oil imports amid Iran conflict
China's trade with Brazil reached a record US$143 billion in the first nine months of the year, driven by a surge in Brazilian oil exports, according to the ChinaMorningPost. This increase comes as the Iran conflict disrupted Gulf oil supplies. Brazilian exports to China rose by 12% to US$84.7 billion, while imports from China grew by 9.9% to US$58.6 billion. The shift highlights China's strategic diversification of energy sources amid geopolitical tensions.
Impact Energy importers in China benefit from diversified oil sources as Brazilian imports rise.
Sources: ChinaMorningPost ↗
Politics
Nothing significant reported today.
Also today in China
- Hong Kong investors most eager in Asia to beat markets – but temper return hopes: report — ChinaMorningPost
- Chinese chemicals and machinery in EU crosshairs as leaders back more trade curbs — ChinaMorningPost
- How has China's economy performed in 2026? — CGTN Business
- 2 Hong Kong MTR disruptions may be linked, expert says — ChinaMorningPost
- Hot US inflation, rising AI costs spark global chip stock rout — CGTN Business
- The China decoupling paradox: why the world still needs its manufacturing machine — ChinaMorningPost
- China says it willing to promote trade in dual-use items with EU — CGTN Business
- Singapore open to legal action against errant firms as haze crisis worsens — ChinaMorningPost
Sources in this briefing
Sources: each headline links to the original article on the publisher's site.
The same day elsewhere
- Argentina: University Protests; Country Risk Rises; Bond Sales Paused
- Brazil: Senate Ends 6x1 Workweek, Gaming Industry Regulated
- Canada: Alberta Referendum Voting, Canada-India Trade Talks
- Germany: German-China Trade Deficit, Deutsche Bahn Alcohol Ban
- Egypt: Egypt Signs Trade Deals, Wheat Prices Targeted
- Spain: Galicia Drought Expands, Madrid Education Strike
- France: Inflation Surges, Tramway Disruption in Montpellier
- United Kingdom: UK Economy Grows, Rail Disruptions Persist
- Indonesia: Rupiah Nears 18,000, Trade Expo Secures Deals
- Israel: CPI Decline, El Al Index Entry, West Bank Incident
- India: Jio IPO Launch, BS7 Emission Norms, Market Surge
- Iraq: SOMO Compensates IOCs, Iraq-Kuwait Flights Resume
- Iran: Hormuz Closure, Dollar Rises, Oil Tanker Fire
- Italy: Italy's Budget Plan and Truckers' Strike Threat
- Japan: Nikkei Plunge, MUFG Bond Moves, Tax Debate Progress
- Kenya: Fuel Prices Rise, VAT on Fuel Extended, Hygiene Market Investment
- South Korea: KOSPI Plunge, Korean Air Revenue Surge
- Lebanon: Lebanon Shipping Costs Rise, Energy Minister Absent
- Morocco: Russian Diesel Arrives, Rabat Unrest, Dirham Rates
- Mexico: Hurricane Trudy Threatens, HR Ratings Downgrades Mexico
- Malaysia: Selangor Schools Close Due to Haze; Ringgit Falls
- Nigeria: NAFDAC Cracks Down on Counterfeits, Ondo Orders River Fumigation
- Netherlands: Albert Heijn Cyberattack, Diesel Prices Drop
- Poland: Fuel Prices Cut, President Vetoes Laws
- Portugal: Porto Housing Protests, Vodafone Challenges Huawei Ban
- Russia: Volga Airports Reopen, Starlink Slows Ukraine Drones
- Senegal: Senegal Water Alert, TRS Inquiry, Navétanes Suspended
- Syria: Syrian Petroleum Audit, Highway Closure
- Turkey: Istanbul Floods Disrupt, New Phone Installment Rules
- Ukraine: Kyiv Power Outages, Drone Exports Approved
- United States: Suspicious Mail, Tech Selloff, Starlink Limits
- Vietnam: Petrol Prices Cut, Sacombank Auctions Assets
- Yemen: Houthi Attacks Escalate, Taiz Under Siege
- South Africa: Power Outages Hit Gqeberha, SASSA Alters Grant Dates