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

The Shanghai Composite saw an uptick of 0.34%, closing at 3,648, while the Shenzhen Component experienced a more substantial rise, gaining 1.46% to reach 11,291 on Monday. This momentum continues from last week's positive performance as investors closely monitor developments regarding the potential extension of the US-China trade tariff truce ahead of the August 12 deadline. Reports suggest that China is negotiating with the US for concessions on export controls related to artificial intelligence chips, which could be part of an upcoming trade agreement, possibly discussed during a summit between Presidents Donald Trump and Xi Jinping. Economically, data released over the weekend revealed that consumer prices in China remained steady in July compared to the previous month, surpassing forecasts that predicted a 0.1% decline. Nevertheless, the trend of producer deflation has persisted, marking the 34th consecutive month of decline. In corporate news, lithium producers Tianqi and Ganfeng both surged by 10% following an announcement from battery giant Contemporary Amperex, which saw a modest increase of 0.1%, stating it had suspended operations at a major lithium mine.