FX.co ★ China Stocks Rise as Trade Tensions Ease

The Shanghai Composite Index gained 0.5%, reaching approximately 3,860, while the Shenzhen Component Index surged 1.5% to 12,880 on Monday. This recovery follows losses from the prior session, amid indications of easing trade tensions between China and the United States. President Donald Trump stated that his proposed retaliatory tariffs on Chinese imports would not be viable. In addition, U.S. Treasury Secretary Scott Bessent is scheduled to meet with Chinese Vice Premier He Lifeng this week, in anticipation of a potential meeting between Presidents Trump and Xi later this month. Investors are also evaluating a series of Chinese economic reports, notably one indicating that Q3 GDP growth has slowed to its lowest in a year. Concurrently, the People's Bank of China maintained its loan prime rates, aligning with expectations. The market rally was led by technology and AI stocks, with significant gains ranging from 4.5% to 11.2% for companies such as Zhongji Innolight, Eoptolink Technology, Victory Giant, Foxconn Industrial, and Cambricon Technologies.