China stocks closed flat on Tuesday as investors exercised cautions amid doubts over whether Beijing and Washington could strike a durable deal.
The blue-chip CSI300 index was unchanged at 3,937.17 points, while the Shanghai Composite Index was flat at 3,043.94 points.
US President Donald Trump said on Monday that trade talks with China were under way and any deal would need to be somewhat tilted in favour of the United States.
Trump and Chinese President Xi Jinping agreed in a meeting on Saturday at a G20 summit in Japan to restart trade talks after the last major round of negotiations collapsed in May.
Investors also turned their focus to China's domestic factors, as they watched if Beijing could temper stimulus measures given the trade truce.
China's economy is likely to hit its growth target this year provided a bitter trade dispute with the United States does not worsen, and hence will not need "very big" stimulus measures to prop up growth, a central bank adviser said on Monday.
China's factory activity shrank more than expected in June, an official manufacturing survey showed, highlighting the need for more economic stimulus as US tariffs and weaker domestic demand ramped up pressure on new orders for goods.
Financial stocks showed a muted reaction to news that China will scrap ownership limits in the financial sector in 2020, earlier than planned.
The largest percentage gainers in the main Shanghai Composite index were Panda Financial Holding Corp Ltd, up 10.03%, followed by Changzheng Engineering Co Ltd, gaining 10%, and Shanghai Baolong Automotive Corp, up by 9.99%.
The largest percentage losers in the Shanghai index were Dynagreen Environmental Protection Group Co Ltd, down 10.02%, followed by Cashway Technology Co Ltd, losing 10%, and Fujian Longma Environmental Sanitation Equipment Co Ltd, down by 10%.
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