China stocks fall as Trump-Xi meeting yields little relief on key tensions
FXI•China’s CSI300 fell 2.2% to its lowest point since early September 2025 as technology shares slumped and investors focused on economic imbalances and geopolitical risks. The Shanghai Composite declined 1.7%, while Hong Kong stocks rose 0.6%.
1. Chinese stocks decline
The CSI300 fell 2.2% by Monday’s lunch break, touching its lowest point since early September 2025 and heading for its worst showing in five weeks. The Shanghai Composite declined 1.7%, while Hong Kong stocks rose 0.6%.
2. Tech shares lead losses
Technology stocks fell after the United States moved toward restricting Chinese-made components used in AI data centres. Eoptolink tumbled 7% in Shenzhen, Innolight fell roughly 9% in Shenzhen and Hong Kong, and China’s CSI 300 Telecommunication Services Index dropped more than 6% to a two-month low.
3. Trade and economic concerns
China said a two-month extension of its trade truce with the United States would give both sides time to evaluate implementation of their arrangement. Sentiment was also weighed down by data showing industrial profit growth slowed in August, thin trading ahead of China’s week-long National Day holiday, and a busy calendar of US inflation, jobs and GDP data during the break.
