Chinese shares retreated Thursday as an extended U.S.-China trade truce failed to ease investor caution during the Trump-Xi summit.
The Shanghai Composite Index, the main gauge of Chinese stocks, closed 1.2% lower at 3,888.37. The Shenzhen Component Index fell 2.3% to 13,316.97.
U.S. Treasury Secretary Scott Bessent said the U.S. and China agreed to extend their "Busan agreement" trade truce by two months to Jan. 10, 2027, ahead of ongoing Trump-Xi summit. The extension, reached after a 12-hour meeting between Bessent and Chinese Vice Premier He Lifeng on Sept. 20, gives both sides more time to negotiate a broader trade deal.
On the regulatory front, the People's Bank of China will conduct overnight reverse repurchase operations daily from Sept. 28 to Oct. 8, capped at 1 trillion yuan daily, to better match the banking system's short-term liquidity needs during the National Day Golden Week holiday.
China is planning to broaden its derivatives trading link with Hong Kong by allowing global investors to access Standard Interest Rate Swaps and Standard Bond Forwards by 2028.
In company news, Zhejiang Wazam New Materials (SHA:603186) will cut its subscribed contribution by 28 million yuan in new materials fund Hangzhou Fengzhou Fund. Shares of the advanced materials manufacturer closed 6% lower Thursday.