China Stocks Tumble As Trade Truce Fails to Boost Investor Confidence

Amidst eased US-China trade tensions, China's stock market faced a setback on Thursday, snapping a three-day winning streak. The CSI300 Index dropped by 0.9%, and the Shanghai Composite Index saw a 0.7% decline, mirroring the fall in the Hang Seng Index in Hong Kong.

The decline follows disappointing local lending data, with new bank loans plummeting in April, exacerbated by ongoing trade frictions with the United States. Meanwhile, China has temporarily halted certain non-tariff measures against U.S. entities as the market awaits further developments in the trade negotiations.

Despite Tencent's revenue beating forecasts, its shares fell by 0.2%. Investors are keenly awaiting Alibaba's earnings report, while Jiangsu Hengrui Pharmaceuticals' plans for a Hong Kong listing buoyed its stock. Additionally, China's decision to reduce the reserve requirement ratio by 50 basis points is seen as part of broader economic stimulus efforts.

(With inputs from agencies.)