2026.05.1502:14:15UTC+00China Stocks on Two-Day Slide

The Shanghai Composite Index fell 0.9% to 4,140 on Friday, while the Shenzhen Component declined 1.1% to 15,565, extending the previous session’s losses as sentiment stayed fragile during the Trump–Xi meeting. President Xi Jinping warned that Taiwan could become a flashpoint for conflict between the US and China, describing the situation as “highly dangerous.” He also reiterated Beijing’s firm opposition to US arms sales to Taiwan and to any moves toward Taiwanese independence.

Despite the tough rhetoric, US Trade Representative Jamieson Greer said both sides appeared willing to extend the existing trade truce. The White House added that the two countries discussed increasing Chinese imports of US agricultural products and oil, and signaled a shared interest in keeping the Strait of Hormuz open.

Major decliners included Zijin Mining Group (-1.6%), Cambricon Technologies (-2%), BYD (-0.7%), and Wuliangye Yibin (-1.1%). For the week, the Shanghai Composite is on track to finish lower, while the Shenzhen Component is poised to post gains.