FX.co ★ China Stocks Gain in Post-Holiday Trade

The Shanghai Composite Index increased by 0.6% to approach the 3,300 mark, while the Shenzhen Component Index climbed 1.3% to reach 10,030 on Tuesday. This gain effectively offset the declines experienced last week following the reopening of the Chinese markets post-Labor Day holidays. Investor confidence was bolstered by indications of a renewed diplomatic effort between Beijing and Washington to alleviate trade disputes. Nevertheless, U.S. President Donald Trump dampened enthusiasm by declaring he has no plans for discussions with Chinese President Xi Jinping this week, despite expressing his willingness to consider decreasing the existing 145% tariff rate on Chinese exports. On the economic landscape, signs of stress were evident in China’s services sector, as April figures indicated growth stalled to a seven-month low due to trade disruptions affecting new business orders. The rally was predominantly led by technology stocks, with significant performances noted from companies such as Talkweb Information, up 2.5%, Shijiazhuang Chan climbing 4.3%, Shenzhen Tianyuan soaring by 20%, Gigadevice Semiconductor gaining 2.7%, and Eoptolink Technology advancing 4.7%.