FX.co ★ China Stocks Climb Ahead of Key Trade Data

On Friday, the Shanghai Composite Index advanced by 0.8%, reaching over 3,560, while the Shenzhen Component Index increased by 0.6% to hit 10,700. This marked a rise to multi-month highs for mainland stocks, as investors anticipated upcoming trade data over the weekend that could provide new insights into the changing dynamics of US-China trade relations. Market participants largely dismissed the latest trade tensions from the US, where President Donald Trump unveiled a 35% tariff on Canadian imports, effective August 1, and hinted at broader tariffs ranging from 15% to 20% on most other trading partners. Analysts highlighted that attractive stock valuations, expectations of additional policy stimulus, and the momentum from the ongoing AI-driven rally were significant factors contributing to the recent market uptrend. Some of the notable companies that gained included China Northern Rare Earth, up by 10%, Wuxi AppTec, which saw a 9.8% increase, and China CSSC Holdings, rising by 8.1%. Both the Shanghai and Shenzhen indices are poised to achieve their third consecutive weekly gain.