FX.co ★ China Stocks Rise on Trade Talk Progress

On Wednesday, the Shanghai Composite Index advanced by 0.7%, surpassing the 3,400 mark, while the Shenzhen Component Index increased by 1% to reach 10,260. This recovery followed the previous session's losses, sparked by encouraging developments in US-China trade discussions. After two days of negotiations in London, officials from both nations established a roadmap to implement the Geneva consensus and pledged to honor the commitments outlined during a recent conversation between President Trump and President Xi. As part of this potential agreement, China is anticipated to remove restrictions on rare earth exports, and the US might consider easing limitations on advanced technology sales to China. The rally was predominantly driven by high-growth technology and new energy stocks, with significant contributions from companies such as East Money, which gained 2.9%, Dawning Information, up by 3.8%, Shenzhen Forms, rising by 5.7%, BYD Company, increasing by 2.2%, and Contemporary Amperex, gaining 2.9%.