SHANGHAI: China and Hong Kong shares held steady on Wednesday as progress in US-China trade talks came largely in line with investor expectations, leaving markets in a wait-and-see mode ahead of further details of the superpowers’ agreed framework.
China’s blue-chip CSI300 Index edged up 0.1% at market open, while the Shanghai Composite Index was flat.
Hong Kong’s benchmark Hang Seng was up 0.1%.
The US and China agreed on a framework to put their trade truce back on track and address China’s export restrictions on rare earth minerals and magnets, US Commerce Secretary Howard Lutnick said on Tuesday at the conclusion of two days of negotiations in London.
“The devil will be in the details but the lack of reaction suggests this outcome fully expected,” said Chris Weston, head of research at Pepperstone.
Muted reaction in S&P 500 futures and only modest movement in the offshore yuan indicated the parties’ Geneva framework agreed last month was largely priced in, Weston said.
Chinese and Hong Kong stocks gain ahead of Sino-US trade talks
“The details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US produced chips to head East,” he said.
The two-day meeting followed a rare leader-to-leader call between US President Donald Trump and Chinese counterpart Xi Jinping on Thursday, after tensions between the countries flared with each accusing the other of violating the Geneva deal.
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