FX.co ★ China Stocks Extend Rally on Trade Optimism

On Wednesday, the Shanghai Composite Index increased by 0.2%, surpassing the 3,670 mark, and the Shenzhen Component Index climbed 1% to reach 11,470. This uptick marks the Shanghai Composite's highest point since December 2021, driven by positive sentiment stemming from the extension of a tariff truce between the United States and China. Both nations have managed to keep their retaliatory tariffs below triple-digit figures after recent negotiations in Geneva, London, and Stockholm. Additionally, gains were observed in Mainland equities following positive trends on Wall Street, fueled by U.S. inflation data that supported expectations of an upcoming interest rate cut by the Federal Reserve. In the corporate arena, China Evergrande Group, noted as the world’s most indebted real estate developer, announced plans to delist from the Hong Kong Stock Exchange. The technology sector led the market rally with significant gains from companies such as Eoptolink Technology (+14%), Zhongji Innolight (+8%), and Foxconn Industrial (+4.1%).