FX.co ★ China Stocks Ease as Investors Await Trade Talks

On Friday, the Shanghai Composite index experienced a decline of 0.3%, slipping below the 3,600 mark, while the Shenzhen Component index recorded a slight decrease of 0.1%, settling at 11,180. The downturn is attributed to investors exercising caution ahead of impending trade negotiations between the United States and China, scheduled for next week. Chinese Vice Premier He Lifeng is poised to engage in a new round of economic and trade discussions with US Treasury Secretary Scott Bessent in Stockholm. The talks are particularly significant as they come with an August 12 deadline to reach a deal that might avert increased US tariffs on Chinese goods. Additionally, market participants are anticipating the forthcoming data on China's industrial profits, expected over the weekend, which could provide insight into how domestic companies are managing the ongoing trade uncertainties. Noteworthy decline was observed in shares of companies like China Northern Rare Earth, which fell 2%, Inner Mongolia Junzheng Energy & Chemical with a 2.4% decrease, and China Tourism Group, down by 3.5%. Despite these declines, both the Shanghai and Shenzhen indexes are on course to achieve weekly gains of approximately 2%.