China’s regulators sought to reassure markets on Monday as equities and the renminbi extended losses in a rocky start to the year, following weak economic data and geopolitical uncertainty ahead of Donald Trump’s inauguration. Mainland China’s benchmark CSI 300 index edged down 0.2 per cent on Monday and has declined 4.1 per cent in the first three trading days of the year, marking the worst start to 2025 among major Asian indices. Small-cap stocks on the CSI 2000 have fallen 6.
The Shanghai and Shenzhen exchanges sought to reassure investors that China’s economy was supported by “solid fundamentals and resilience” during a weekend meeting with foreign institutions “to solicit opinions and suggestions” on recent moves in Chinese equities, they said on Sunday. The central bank on Monday kept the daily fixing rate — the midpoint around which the renminbi is allowed to trade 2 per cent in either direction against the dollar — at Rmb7.