FX.co ★ China Stocks Fall as Trading Resumes After Summit

The Shanghai Composite Index declined 0.8% to 3,859 on Monday, while the Shenzhen Component Index dropped 2.1% to 13,033, its lowest level in nearly two months, as investors returned from the holiday break and assessed the limited outcomes of the Trump–Xi summit. During the meeting, Treasury Secretary Scott Bessent stated that the US and China had agreed to extend their trade truce through January 10. Xi, however, referred only to a “new joint arrangement” on bilateral trade without specifying any timeline.

The summit fell short of delivering substantial progress on core issues such as artificial intelligence and the war in Iran, and Beijing’s efforts to persuade Washington to scale back arms sales to Taiwan appeared to yield little tangible movement.

On the domestic front, China’s industrial profits rose 15.7% year-on-year to CNY 5.27 trillion in the first eight months of 2026, a moderation from the 17.6% increase recorded in the January–July period. Among notable underperformers in the session were Zijin Mining Group (-1.3%), Cambricon Technologies (-2.9%), CATL (-1.5%), and Zhongji Innolight (-1.3%).