Chinese Stocks Fall as Investors Puzzle Over US-China Trade Progress

Chinese stocks slid suddenly before a second day of US-China trade talks in London. While it wasn’t immediately clear what caused the slide, some investors pointed to earlier commentary on a social media account affiliated with state broadcaster CCTV, which said that “the US should realistically view the progress made and revoke negative measures against China.” Beijing is earnest about trade talks with the US but is at the same time principled, it added.

Hopes that trade negotiations will help ease tensions between the world’s two largest economies had spurred a sharp rebound in Chinese shares in recent weeks. “People seem to be speculating that the talks didn’t go well,” said Fu Shifeng, investment director at Cheng Zhou Investment. “The rally in gold prices as well as rare-earth stocks seems to suggest that.”