FX.co ★ China Stocks Rise as Trade Talks Underway

On Monday, the Shanghai Composite experienced a modest increase of 0.12%, concluding at 3,598, while the Shenzhen Component rose by 0.44% to reach 11,218. These gains built upon last week's positive trajectory as U.S. and Chinese officials inaugurated a new series of trade discussions in Stockholm. U.S. Treasury Secretary Scott Bessent conveyed optimism regarding the potential extension of the current trade truce, highlighting that negotiations would address not only tariffs but also wider issues, including China's energy acquisitions from Russia and Iran. Concurrently, weekend data revealed a 1.8% decline in China's industrial profits for the first half of the year, indicating ongoing deflationary pressures and persistent trade-related uncertainty. Leading the market gains were major players such as China Northern Rare Earth, which advanced by 4.7%, Victory Giant, up 6.3%, Jiangsu Hengrui with an increase of 6.4%, Eoptolink Technology, which rose by 2.8%, and Suzhou Dongshan, up by 2.6%.