The Economic Information Daily reported on the 24th that the much-anticipated Xi-Trump meeting has finally taken place. Chinese President Xi Jinping has embarked on a state visit to the United States for the first time in 11 years, and U.S. President Trump personally welcomed him with high-level protocol. The market originally expected more breakthrough progress in bilateral cooperation, but the U.S. Treasury Secretary revealed that the China-U.S. trade war truce may only be extended by two months. Combined with the upcoming mainland Mid-Autumn Festival holiday market closure starting tomorrow (25th), A-shares adjusted significantly today. The SSE Composite Index fell 1.22% to close at 3,888.37 points, losing the 3,900-point level, with a weekly decline of 0.6%; the Shenzhen Component Index dropped 2.34% for the day, and the ChiNext Index also fell 2.68%. Total market turnover reached 1.65 trillion yuan (RMB, same below), down 111.6 billion yuan or 6% compared to the previous trading day.

Reuters cited industry opinions stating that the marginal easing of China-U.S. relations generally still boosts market confidence, but unless there is an unexpectedly positive agreement, such as significant tariff reductions or agricultural product cooperation, the market has already priced in the positive news.

The leaders of China and the U.S. will hold a meeting on Thursday (24th) local time, followed by an expanded bilateral talk at noon. The first outcome of the China-U.S. summit was revealed: U.S. Treasury Secretary Bessent stated on the 23rd, after holding the second meeting within four days with Chinese Vice Premier He Lifeng, that both countries are willing to extend the China-U.S. trade truce by two months and are also willing to consider reaching a broader trade agreement. However, earlier reports indicated that the U.S. was considering an extension of three to six months, while China's demand was until the end of Trump's term, so the actual negotiated period is significantly shorter than expected.

On the market front, most industry sectors declined, while resource stocks such as coal and oil maintained gains, and bank stocks saw more gains than losses; among them, China Construction Bank (Shanghai: 601939) closed 1.4% higher, leading the gains. This was because Bessent revealed that "announcements regarding financial services and agricultural product purchases might be seen during the Chinese delegation's visit to the U.S."

On the downside, the non-ferrous metals sector fell nearly 3.5%, pharmaceutical stocks dropped 2.8%, and semiconductors and real estate sectors saw normal pullbacks after yesterday's strong gains. The China-U.S. summit may facilitate more U.S. agricultural product imports, potentially putting downward pressure on domestic agricultural product prices. Today, agricultural planting stocks weakened, with Wanxiang Denong (Shanghai: 600371) plunging 8.3%. (ry)