FX.co ★ China Stocks Climb on Trade Deal Hopes

The Shanghai Composite Index advanced by 0.8% to approximately 3,980, while the Shenzhen Component Index climbed 1.1% to 13,440 on Monday. The Shanghai Composite reached new ten-year highs amid optimism over potential progress in trade discussions between President Trump and President Xi Jinping in South Korea this week. U.S. and Chinese negotiators announced a consensus on significant issues, including export controls, fentanyl regulation, and shipping levies, following productive discussions over the weekend in Malaysia. Investor sentiment was further uplifted by reports indicating a 21.6% year-on-year surge in China's industrial profits in September, marking the quickest growth since November 2023. The stock market rally was predominantly driven by technology and AI-related sectors, with companies like Eoptolink Technology, Zhongji Innolight, Victory Giant, Foxconn Industrial, and ZTE Corp seeing increases between 2.5% and 9.4%. Additionally, there were gains in the high-growth clean energy and materials sectors, featuring companies such as Sungrow Power, which rose 1.1%, China Northern Rare Earth, up 2.5%, and Zijin Mining, which increased by 3.2%.