FX.co ★ China Stocks Slip as Xi Meets Trump

On Thursday, the Shanghai Composite Index saw a modest decrease of 0.2%, dropping below 4,010, while the Shenzhen Component Index declined by 0.6%, reaching 13,610. This decrease marks a retreat from the Shanghai Composite's recent ten-year highs. Market participants are keenly awaiting developments from the anticipated meeting between President Xi Jinping and U.S. President Donald Trump. This summit represents their first encounter since President Trump assumed office again in January. There is widespread speculation that the meeting will result in a formal trade truce, potentially addressing issues such as the reduction of tariffs linked to fentanyl, the approval of the sale of TikTok's U.S. operations, the resumption of soybean imports, and a halt on China's rare earth export restrictions. President Trump has also provided reassurances to the markets, stating that the United States aims to secure a mutually advantageous trade agreement with China. In the stock market, sectors related to technology and artificial intelligence led the downturn, as investors opted to realize profits. Notable companies such as Eoptolink Technology, Zhongji Innolight, Foxconn Industrial, Victory Giant, and Cambricon Technologies experienced declines ranging from 1.7% to 7.2%.