China stocks fall as trade truce uncertainty weighs

China stocks fell on Thursday as uncertainty continued over the extension of the US-China trade truce. The Shanghai Composite dropped 1.22% to 3,888.4, while the Shenzhen Component declined 2.34% to 13,317.

US Treasury Secretary Scott Bessent said the US and China had agreed to extend the trade truce by two months, although China has not officially confirmed the agreement. The extension is also shorter than the three-to-six-month period some US officials had earlier suggested.

Markets remain cautious ahead of a possible Trump-Xi meeting. The talks are expected to cover areas including AI, Iran, Taiwan and broader economic ties, with both sides looking to keep relations stable.

Several major stocks declined. Kweichow Moutai fell 1.14%, Foxconn Industrial Internet dropped 3.14%, China Life Insurance lost 3.03%, CATL slipped 0.3%, Zhongji Innolight fell 0.4%, and WUS Printed Circuit declined 1.16%.

Chinese stock markets will remain closed from September 25 to 27 for the Mid-Autumn Festival.

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