FX.co ★ China Stocks Gain as Trade Truce Extension Eyed

On Monday, the Shanghai Composite saw a modest increase of 0.2%, reaching levels above 3,640, while the Shenzhen Component Index rose by 1%, closing at 11,240. This positive momentum extends the gains from the previous week as investors anxiously await news regarding the potential extension of the US-China tariff truce ahead of the upcoming August 12 deadline. Reports suggest that China is advocating for the US to relax export controls on artificial intelligence-related chips as part of a trade agreement, potentially preceding a summit between President Donald Trump and President Xi Jinping. On the economic side, weekend data revealed that consumer prices in China remained steady in July compared to the previous month, surpassing expectations of a 0.1% decrease. Nonetheless, the trend of producer price deflation continued for the 34th consecutive month. The technology sector drove the market rally, highlighted by significant gains in Anhui Greatwall (7.8%), Eoptolink Technology (4.8%), and Luxshare Precision (3.9%).