SHANGHAI: Mainland China stocks edged higher on Friday, with the benchmark Shanghai index ending at a nine-month high on fresh signs of easing Sino-US trade tensions, while Hong Kong shares slipped.
The US has told GE Aerospace it can restart jet engine shipments to China’s COMAC, a source told Reuters.
The United States lifted restrictions on exports to China for chip design software developers and ethane producers.
Meanwhile, China is reviewing and approving export licences for controlled items and has been informed by the US about cancellations of “restrictive measures” against Beijing, its commerce ministry said.
The Shanghai Composite index gained 0.32% to end at 3,472.32 points, the highest closing since October 8, 2024. For the week, the benchmark rose 1.4%.
The blue-chip CSI300 index rose 0.36% to 3,982.2 points, the loftiest finish since March 19. For the week, the index climbed 1.54%.
The banking sector was among the top gainers, with a sub-index tracking the industry closing 1.86% higher at a record high. The sub-index gained 3.81% for the week.
The steel sector also outperformed after China’s top leaders pledged to tighten oversight of aggressive price-cutting by domestic firms, as the economy grapples with persistent deflationary pressures. The CSI steel sub-index gained 0.58%.
“It could be a prelude to potential supply side reform 2.0, in our view,” Citi analysts said.
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