The Shanghai Composite and Shenzhen Component indexes traded around the flatline on Friday, struggling for clear direction as investors assessed the phone call between US President Donald Trump and Chinese President Xi Jinping. The two leaders agreed to continue negotiations as the latest dispute over rare earths appeared to have cooled, though no concrete details were provided. Despite the diplomatic overture, market sentiment remained cautious amid expectations that geopolitical tensions will persist as the US and China continue to test each other’s economic resilience. Investors now turn their attention to upcoming Chinese inflation and trade data, due Monday, for fresh signals on the health of the world’s second-largest economy. Notable gainers included Avic Chengdu (+6.3%), Hengbao Co (+2.2%), and Tianjin Benefo (+10%), while Shenzhen Forms (-5.0%) and Talkweb Information (-2.2%) posted significant losses. For the week, both major indexes are on track to gain over 1%.