The Shanghai Composite fell 0.7% to close at 3,424 on Friday, while the Shenzhen Component edged up 0.34% to 10,378, as mainland markets struggled for direction amid the lack of concrete details in the newly confirmed US-China trade agreement. Beijing announced that both countries have finalized the terms of a trade deal reached earlier this month in London, aimed at implementing the so-called Geneva consensus.
Under the agreement, China will review export applications for items under export control rules, while the US will cancel a range of existing restrictive measures on China. On the data front, industrial profits in China dropped 9.1% year-on-year in May—the sharpest decline in seven months—highlighting ongoing economic challenges. Notable losses were seen in Beijing Compass (-3.4%), Lakala (-2.4%), and Kweichow Moutai (-1.2%). Despite Friday’s muted performance, the Shanghai and Shenzhen indexes still posted solid weekly gains of 1.91% and 3.73%, respectively.
