China Stocks Fall as Trading Resumes After Summit
The Shanghai Composite fell 0.8% to 3,859 on Monday, while the Shenzhen Component lost 2.1% to a near two-month low of 13,033, as investors weighed the lack of breakthroughs at the Trump-Xi summit after returning from the holiday break. During the meeting, Treasury Secretary Scott Bessent announced that the US and China had agreed to extend their trade truce through January 10, despite Xi referring only to a “new joint arrangement” on bilateral trade and not providing a timeline. The summit stopped short of delivering meaningful progress on issues such as AI and the Iran war, while Beijing's efforts to persuade Washington to scale back arms sales to Taiwan also appeared to gain development. Meanwhile, industrial profits rose 15.7% year-on-year to CNY 5.27 trillion in the first eight months of 2026, easing from 17.6% in the January—July period. Notable laggards included Zijin Mining Group (-1.3%), Cambricon Technologies (-2.9%), CATL (-1.5%), and Zhongji Innolight (-1.3%).
1% to a near two-month low of 13,033, as investors weighed the lack of breakthroughs at the Trump-Xi summit after returning from the holiday break. During the meeting, Treasury Secretary Scott Bessent announced that the US and China had agreed to extend their trade truce through January 10, despite Xi referring only to a “new joint arrangement” on bilateral trade and not providing a timeline. The summit stopped short of delivering meaningful progress on issues such as AI and the Iran war, while Beijing's efforts to persuade Washington to scale back arms sales to Taiwan also appeared to gain development. 6% in the January—July period.
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