FX.co ★ China Stocks Dip Ahead of High-Stakes Tariff Talks

The Shanghai Composite decreased slightly by 0.1% to fall below the 3,350 mark, while the Shenzhen Component slid 0.65% to 10,140 on Friday. This decline erased gains from the previous session as investors remained cautious ahead of crucial trade negotiations between China and the United States set for the weekend. Vice Premier He Lifeng is poised to engage in high-stakes discussions with U.S. Treasury Secretary Scott Bessent on Saturday in Switzerland, aiming to reduce tariff tensions between the two major economies. Earlier this week, the People's Bank of China indicated its intention to lower interest rates to mitigate the economic impact from the mounting trade frictions. Additionally, market participants are keeping a keen eye on upcoming trade data to discern early indicators of how tariffs are affecting China's export-centric economy. Among the notable declines were Avic Chengdu, which fell 2.9%, as well as Zhongji Innolight and Hytera Communications, both slipping 1.4%. Despite Friday's setbacks, both the Shanghai and Shenzhen indexes are poised to record weekly gains of around 2.1% and 2.4%, respectively.