Mumbai, May 14 -- Chinese markets fell on Thursday as investors booked profits after recent strong gains and kept a close eye on talks between US President Donald Trump and Chinese President Xi Jinping. The Shanghai Composite dropped 1.52% to close at 4,178, while the Shenzhen Component lost 2.14% to 15,746, pulling back from multi-year highs reached in the previous session.

Taiwan remained the key focus in the Trump-Xi discussions, with Xi warning that mishandling the issue could lead to possible "clashes." The leaders also discussed the Middle East, the war in Ukraine, and the Korean Peninsula. At the same time, Xi signaled support for further economic opening and more stable China-US relations. Investors are not expecting major breakt...