SynopsisChina and Hong Kong stocks declined on Wednesday as investor expectations surrounding the upcoming summit between US President Donald Trump and Chinese President Xi Jinping cooled. Rising trade friction with Europe further dampened sentiment, although property shares bucked the broader market trend on government support measures for China Vanke.

comChina and Hong Kong shares fall ahead of Trump-Xi summitChina and Hong Kong stocks fell on Wednesday as investors scaled back expectations for an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, while growing trade tensions with Europe added to market concerns, Reuters reported. 4%.

The September 24 meeting between Trump and Xi is being closely watched for signs of whether the two countries will extend a trade truce agreed last year that helped avert a major shock to the global economy. Read more: Dow, S&P 500 slip as oil hovers near $100 despite Nasdaq’s record closeOxford Economics said in a report that the meeting could make the US-China relationship more predictable, but trade, technology, and security policies were likely to remain structurally restrictive.

The think tank described the likely outlook as a calmer but not closer relationship. Europe adds to pressure on Chinese stocksInvestors were also assessing rising trade tensions between China and Europe.

The European Central Bank said on Tuesday that China's industrial transformation was putting pressure on European companies by squeezing them out of global markets. Fitch Ratings said China's trade shock had affected the euro zone, with export-oriented Germany particularly exposed.

5%, citing growing economic imbalances. Chinese automakers were among the sectors under pressure.

The weakness followed calls from some European auto executives and politicians for local-content requirements and broader tariffs aimed at limiting vehicle sales from China. Property stocks buck broader market trendChinese property stocks moved higher, however, amid signs of renewed government support for the troubled sector.

Property shares in both mainland China and Hong Kong jumped after reports 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. The move provided a boost to the property sector, which has remained under pressure from weak demand, high debt levels, and a prolonged housing downturn.