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China Stocks Drag as Trump-Xi Meeting Fails to Excite Investors

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Chinese stocks slumped following the departure of U.S. President Donald Trump from Beijing Friday as his meeting with President Xi Jinping failed to excite investors.

The Shanghai Composite Index, the main gauge of Chinese stocks, lost 1% or 42.53 points to fall to 4,135.39. The Shenzhen Component Index declined 1.2% or by 184.36 points to 15,561.37.

The meeting at the Zhongnanhai complex in Beijing did not produce any significant policy, including an easing of tariffs, according to a Reuters report.

"I think we were optimistically looking at the meeting and maybe half expecting some huge trade agreement to be proposed or announced and from that view, it has disappointed," Reuters quoted ATFX Global Chief Market Analyst Nick Twidale as saying.

Both Trump and Xi were not able to discuss export controls on semiconductors, Trade Representative Jamieson Greer told Bloomberg in an interview Friday.

Trump said the U.S. was able to secure "fantastic" trade deals with China, including plans to order 200 Boeing jets, while Xi said he "likes the idea" of purchasing U.S. oil, Fox reported.

However, Treasury Secretary Scott Bessent said China may not increase its purchases of U.S. soybeans beyond their existing commitments.

The U.S. president also advocated for Visa's entry into China's credit card industry.

In corporate news, Dongfeng Automobile (SHA:600006) grew 3% at the closing bell after parent company Dongfeng Group signed a deal with Stellantis to produce Jeep and Peugeot models in China.

China Coal Energy's (SHA:601898) shares rose 4% in Shanghai despite recording declines in coal sales and production in April.

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