The Shangai Composite Index Closes 0.36% Lower

The Shanghai Composite fell 0.4% to 3,921 on Thursday, while the Shenzhen Component dropped 0.9% to 13,521, as uncertainty persisted over the extension of the US-China trade truce. As Chinese President Xi Jinping arrived in the US for his first visit in 11 years, Treasury Secretary Bessent revealed that the US and China had agreed to extend their trade truce by two months, until January 10. However, China has not publicly confirmed that expiration date, and the extension falls short of the three-to-six-month continuation that some US officials had previously suggested. While expectations for the Trump-Xi summit remain modest, the meeting is still expected to cover artificial intelligence, Iran, Taiwan, and broader economic relations, as both sides seek to maintain stability in bilateral ties. Among the notable losers were Foxconn Industrial Internet (-1.1%), Zijin Mining Group (-1.3%), CATL (-1.2%), and Suzhou Dongshan Precision Manufacturing (-2.6%).

The Shangai Composite Index decreased 14 points or 0.36 percent on Wednesday to close at 3938 points. The decline was led by Yonyou Soft (-3.74%), Datang Intl (-2.87%) and China Coal (-2.18%). On the upside, the strongest performers were China Fortune (3.57%), Hengli Petrochemical (2.00%) and Sdic Power (1.89%).

The Shanghai Composite fell 0.39% to close at 3,936.5 on Wednesday, while the Shenzhen Component slipped 0.64% to 13,636.1, as investors remained cautious ahead of the highly anticipated Trump-Xi summit. As preliminary talks held in New York last Sunday failed to secure an agreement to extend the tariff truce set to expire in November, expectations for the Trump-Xi meeting remain limited. However, the summit is still expected to cover a range of sensitive issues, including artificial intelligence, Iran, Taiwan, and trade relations, as both sides seek to stabilize bilateral ties. Xi and his wife, Peng Liyuan, are scheduled to be welcomed by Trump on Wednesday evening, marking the Chinese president's first visit to the United States since 2015. Among notable decliners, Bank of China fell 1.05%, CNOOC lost 2.42%, CATL dropped 1.19%, Suzhou Dongshan Precision Manufacturing slid 2.58%, and Weichai Power fell 4.22%.