The Shangai Composite Index Closes 1.47% Lower

The Shanghai Composite fell 0.9% to 4,140 on Friday, while the Shenzhen Component dropped 1.1% to 15,565, extending losses from the previous session as market sentiment remained fragile amid the Trump–Xi meeting. President Xi Jinping warned that Taiwan could become a flashpoint for clashes between the US and China, calling the situation “highly dangerous.” He also reiterated strong opposition to US arms sales to Taiwan and Taiwanese independence. Despite the firm remarks, US Trade Representative Jamieson Greer said both sides appeared open to extending the current trade truce. Moreover, the White House said both sides discussed boosting Chinese imports of US farm products and oil, and indicated alignment on keeping the Strait of Hormuz open. Notable laggards included Zijin Mining Group (-1.6%), Cambricon Technologies (-2%), BYD (-0.7%), and Wuliangye Yibin (-1.1%). Over the week, the Shanghai Composite is on track for a weekly decline, while the Shenzhen Component is set to post gains.

The Shangai Composite Index fell 62 points or 1.47 percent on Thursday to close at 4180 points. Leading the losses are Avic Aviation Engine (-5.04%), Greenland Holdings (-4.38%) and China Fortune (-4.31%).

The Shanghai Composite slipped 1.52% to close at 4,178 on Thursday, while the Shenzhen Component retreated 2.14% to 15,746, with both indices pulling back from multi-year highs reached in the previous session as investors booked profits and closely watched a high-stakes meeting between Presidents Donald Trump and Xi Jinping. Taiwan has become the most sensitive issue in Trump–Xi talks, with Xi warning that mishandling it could prompt potential "clashes." The two leaders also discussed a range of major topics, including the Middle East, the war in Ukraine, and developments on the Korean Peninsula. Meanwhile, Xi also promised economic opening and more stable China–US ties. Expectations for the summit are low, with investors mainly hoping to maintain a steady relationship. Tech stocks slumped, with notable declines seen in Cambricon Technologies (-4.28%), Hygon Information Technology (-6.6%), NAURA Technology (-2.86%), and Victory Giant Technology (-8.41%).