China and Hong Kong stocks extended losses on Thursday, September 24, as investors remained skeptical that the meeting between US President Donald Trump and Chinese President Xi Jinping in Washington would produce a broader breakthrough beyond the trade truce extension already announced.

How the Major Indexes Moved

Hong Kong's Hang Seng Index fell 1.01% to 24,834.12, losing the 25,000 level after three consecutive sessions of gains. The Hang Seng China Enterprises Index dropped 1.06% to 8,273.81, and the Hang Seng Tech Index declined 1.33% to 4,379.07. On the mainland, the Shanghai Composite fell 0.4% to 3,936.52, and the Shenzhen Component slid 0.6% to 13,636.07.

What's Weighing on Sentiment

Several factors converged to sour investor mood ahead of the summit. Newsquawk reported that Xi was unlikely to bring Chinese chief executives to the meeting, tempering hopes for major business deals that had circulated in earlier reporting. A People's Bank of China liquidity drain also weighed on broader market sentiment. Separately, China's ambassador to the US, Xie Feng, restated that Taiwan and human rights remain "red lines" for Beijing — language markets typically read as signaling less room for compromise and a higher chance of continued policy or trade friction.

Fitch Trims China's Growth Outlook

Adding to the cautious tone, credit rating agency Fitch lowered its 2026 China growth forecast by 0.1 percentage point to 4.5%, citing growing economic imbalances tied to weaker investment and consumer spending. Fitch separately noted that China's trade shock had rippled into the eurozone, with export-oriented Germany particularly exposed to the fallout.

AI Names Hit Hardest

Technology and AI-linked stocks bore the brunt of Thursday's selloff, partly on "AI probe jitters." Alibaba was the biggest blue-chip decliner, falling 4.4%, followed by Xiaomi, down 3.8%. Among recently listed AI labs, Z.AI tumbled 12.4% and MiniMax fell around 4%, while Tencent was also lower during the session. Alibaba's decline came the same day the company held its annual general meeting.

Autos Also Under Pressure

An index tracking Chinese carmakers fell as much as 0.6%, after some European auto executives and politicians called for local-content rules and expanded tariffs to curb vehicle sales from China. An index of Chinese new-energy vehicle companies declined nearly 1% in sympathy.

A Bright Spot: Property Stocks

Not every sector moved lower. Chinese property shares jumped in both mainland China and Hong Kong following a Reuters report that Chinese regulators had asked some banks not to classify overdue loans to China Vanke as non-performing, and to extend repayment deadlines for the state-backed developer — a signal of renewed government support for the struggling property sector.

What the Summit Is Actually Expected to Cover

The September 24 Trump-Xi meeting is being closely watched for signs of whether the two countries will extend the trade truce agreed last year that helped avert a broader shock to the global economy — a question partly answered a day earlier when Treasury Secretary Scott Bessent confirmed a two-month truce extension following his meeting with Vice Premier He Lifeng. Markets are also watching for signals on trade, semiconductors, artificial intelligence, and global supply chains.

Analysts' Muted Expectations

Oxford Economics said in a report that the meeting could make the US-China relationship more predictable, but cautioned that trade, technology, and security policies were likely to remain structurally restrictive regardless of the summit's outcome — describing the likely path forward as a calmer, but still fundamentally constrained, bilateral relationship.

What's Next

With the summit now underway and markets already having priced in relatively modest expectations, investors will be watching for any concrete announcements on tariffs, AI cooperation, or rare-earth mineral flows that could move sentiment further in either direction. For continuing coverage, see the full Reuters report.