The Shanghai Composite fell 0.8% to below 3,890, while the Shenzhen Component sank 1.9% to 12,840 on Friday, with mainland shares poised to end the week lower as escalating US-China trade tensions weighed on sentiment. Chinese equities also tracked Wall Street losses after two US banks reported bad loans, raising concerns over broader credit market stress. Beijing accused Washington of deliberately fueling panic over rare earth controls, while US officials warned that such measures threaten global supply chains. President Donald Trump and President Xi Jinping are expected to meet in South Korea later this month in an effort to ease tensions. Investors also await the upcoming Fourth Plenum for fresh policy direction. Technology and clean energy stocks led the retreat, with ZTE Corp, Zhongji Innolight, Tongfu Microelectronics, Sungrow Power, and Contemporary Amperex dropping between 1.5% and 7.4%.
