Tensions between the world’s two biggest economies flared again after US President Donald Trump on Friday accused Beijing of violating the consensus reached in May’s Geneva talks.

Today, China’s commerce ministry rebuked Trump, calling his comments “groundless,” and promising to take “forceful measures” to safeguard its legitimate rights and interests.

The Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, declined 0.9% to the lowest since May 6, while Hong Kong’s benchmark Hang Seng Index slipped 0.6%.

The offshore yuan weakened slightly to per dollar, trimming earlier losses during Asian trading hours, while the Hong Kong dollar hovered near the weaker end of its 7.75-7.85 per dollar trading band.

Mainland markets are closed for the Dragon Boat Festival and will resume trading tomorrow.

The declines today were across the board, with the Hang Seng Tech Index losing 0.7%, property sub index declining 1.4% and healthcare sector sliding nearly 2%.

Among the biggest laggards, local property firm New World Development plunged 6.9% to near a two-month low after it deferred coupon payments.

Car makers continued the slide amid ongoing price war concerns.

Shares of Li Auto and Nio both lost more than 2%, while BYD weakened 1.9%.

Trump and Chinese President Xi Jinping will speak soon to iron out trade issues including a dispute over critical minerals, treasury secretary Scott Bessent said over the weekend.