Mumbai, Sept. 17 -- China's stock markets fell on Thursday as investors turned cautious ahead of high-level US-China talks. The Shanghai Composite dropped 0.41% to 3,875.6, while the Shenzhen Component declined 0.33% to 13,409.9.

US Treasury Secretary Scott Bessent is expected to meet Chinese Vice Premier He Lifeng this weekend for final preparations ahead of the September 24 meeting between US President Donald Trump and Chinese President Xi Jinping. Investors remain focused on the outlook for tariffs, sanctions and wider geopolitical tensions, including issues involving Taiwan and the Middle East.

Energy stocks were among the biggest decliners. PetroChina fell 1.67%, CNOOC dropped 2.39% and Sinopec lost 1.54%. In contrast, BYD gained 1...