The Shanghai Composite edged down 0.1% to around 3,595, while the Shenzhen Component dropped 0.5% to 11,160 on Tuesday, reversing the previous session’s gains as investors turned cautious ahead of developments in the US-China trade talks underway in Stockholm. The two economic giants are seeking to extend their fragile trade truce by another 90 days ahead of the August 12 deadline. The outcome could pave the way for a possible meeting between President Donald Trump and President Xi Jinping later this year, while also easing tensions in sensitive sectors such as semiconductors and rare earths. Notable decliners included China Northern Rare Earth (-1.4%), East Money Information (-1.9%), Power Construction (-3.4%), Shenghe Resources (-1.4%), and Accelink Technology (-1.7%).