Chinese shares closed lower Wednesday as investors turned cautious ahead of the Trump-Xi summit, with geopolitical tensions and weaker growth expectations weighing on sentiment.
The Shanghai Composite Index, the main gauge of Chinese stocks, declined 0.4% to 3,936.52. The Shenzhen Component Index fell 0.6% to 13,636.07.
Firm rhetoric from Beijing added to market caution over the Sept. 23-to-Sept. 25 summit. Ambassador Xie Feng warned that Taiwan and human rights are "red lines" for China, raising concerns over potential friction at the summit and its implications for U.S.-China relations.
Adding further pressure was Fitch's downgrade of China's 2026 growth forecast to 4.5%, as weaker investment and consumer spending raised concerns about domestic demand and the outlook for corporate earnings.
In company news, Leo Group (SHE:002131) will sign a related-party transaction framework agreement with Chuangxing Resource, controlled by Chair and General Manager Wang Xiangrong. Shares of the mechanical manufacturing and digital marketing company closed 5% lower Wednesday.