China Stocks Dip Ahead of High-Stakes Tariff Talks

The Shanghai Composite fell 0.1% to below 3,350 while the Shenzhen Component dropped 0.65 to 10,140 on Friday, giving back gains from the previous session as caution prevailed ahead of key Sino-US trade negotiations scheduled for this weekend.

Vice Premier He Lifeng is set to meet US Treasury Secretary Scott Bessent on Saturday in Switzerland for high-level discussions aimed at easing tariff tensions between the two economic superpowers.

Earlier this week, the PBOC signaled plans to lower interest rates in an effort to cushion the economy against the fallout from escalating trade frictions.

Meanwhile, investors are closely watching upcoming trade data for early signs of how tariffs are impacting China’s export-driven economy.

Notable losers on the day included Avic Chengdu (-2.9%), Zhongji Innolight (-1.4%), and Hytera Communication (-1.4%).

Despite Friday’s pullback, the Shanghai and Shenzhen indexes remain on track to post weekly gains of approximately 2.1% and 2.4%, respectively.