FX.co ★ China Stocks Gain on Trade Optimism

On Friday, the Shanghai Composite edged up by 0.1% to approximately 3,384, while the Shenzhen Component saw a rise of 0.5%, reaching 10,266. This development marked a rebound from the losses observed in the prior session, driven by a more positive outlook on Sino-US trade negotiations. The Chinese Foreign Ministry revealed that both Washington and Beijing have agreed to maintain open communication channels after a discussion between Chinese Vice Foreign Minister Ma Zhaoxu and US Deputy Secretary of State Kurt Campbell. This announcement alleviated investor apprehensions over rising tensions and also kindled optimism for renewed dialogue. Meanwhile, the People’s Bank of China injected 500 billion yuan into the banking sector using its one-year medium-term lending facility. This action is aimed at ensuring sufficient liquidity and encouraging credit growth amid a delicate economic recovery. The rally was led by high-growth sectors, with significant advances noted in technology and electric vehicle stocks. Noteworthy performances included Hydsoft Technology, which surged 4.6%; Kyland Technology, which soared 9.0%; Seres Group, which climbed 5.6%; and BYD Company, which gained 2.7%.