China Stocks Slip as US-China Talks Loom

The Shanghai Composite slipped 0.3% to 3,880 on Thursday, while the Shenzhen Component edged down 0.1% to 13,439, reversing gains from the previous session as investors turned cautious ahead of high-level US-China talks this weekend. US Treasury Secretary Scott Bessent is set to meet Chinese Vice Premier He Lifeng for final preparatory discussions before the September 24 summit between Presidents Donald Trump and Xi Jinping in the US. While the upcoming meetings are expected to help improve relations between the world’s two largest economies, investors remained cautious amid lingering uncertainties over tariffs, sanctions, and geopolitical tensions, including those involving Taiwan and the Middle East. On the corporate front, BYD fell 0.6% after reports that Chinese officials may include the automaker in Xi Jinping’s business delegation for his summit with Trump. Energy stocks were also among the top laggards, including PetroChina (-1.9%) and CNOOC (-2.9%).