Chinese equities retreated on Wednesday as President Xi Jinping's meeting with US counterpart Donald Trump kept investors on edge. The CSI 300 Index slid as much as 1.7%, lagging behind broader Asia-Pacific markets as participants booked profits from the recent tech rally.

Technology shares bore the brunt of selling pressure. The ChiNext and STAR 50 indices tumbled 2.5% and 2.6% respectively, reversing gains from the previous session when both had hit record highs. The sharp reversal suggests traders are positioning cautiously ahead of potential trade policy signals.

Market participants appear unwilling to maintain aggressive tech positions without clearer direction from the bilateral talks. The pullback reflects typical pre-announcement volatility, where investors often reduce exposure to high-beta sectors while awaiting concrete developments.

This market reaction demonstrates how geopolitical events continue to drive short-term sentiment in Chinese markets, particularly for growth-oriented tech stocks that have led recent gains.