Chinese stocks declined on Wednesday despite signs of progress in US-China trade talks. The Shanghai Composite fell 0.3% to 3,852, a fresh one-month low, while the Shenzhen Component dropped 0.4% to 13,243, its lowest level since December 2025. Expectations are firming for an extended trade truce, with discussions including possible tariff cuts on goods such as US energy and agricultural products. Treasury Secretary Scott Bessent said Tuesday that he will meet Chinese counterpart He Lifeng this weekend, ahead of the Sept. 24 summit between President Donald Trump and Xi Jinping in Washington. Investors remained cautious because the leaders' meeting could still produce an uncertain outcome. PetroChina and China Jushi Co., Ltd each fell 1.6%, CATL dropped 2.6%, Luxshare Precision Industry declined 1%, and Muyuan Foods lost 1.3%.