FX.co ★ China Stocks Advance to Multi-Year Highs

On Thursday, the Shanghai Composite saw a slight increase of 0.2%, reaching approximately 3,885, while the Shenzhen Component climbed 0.5% to 13,280. These mainland indices achieved new multi-year highs, mirroring the global market uptrend following the U.S. Federal Reserve's anticipated quarter-point interest rate reduction. The Fed further signaled its plan for two additional cuts within the current year, with only one anticipated in 2026, contradicting expectations for two or three reductions next year. Investor sentiment was buoyed by positive developments in U.S.-China trade talks and the possibility of a TikTok accord ahead, as Presidents Donald Trump and Xi Jinping are scheduled to discuss negotiation terms on Friday. In other developments, China's cyberspace regulatory body reportedly instructed companies, including Alibaba, to cease purchasing Nvidia’s RTX Pro 6000D, a multifunctional workstation chip suitable for AI applications. The technology sector led the market rally, with companies such as Cambricon Technologies (+2.9%), Hygon Information (+6.7%), and Dawning Information (+6%) securing significant gains.