China stocks rise as market awaits Trump-Xi meeting

SHANGHAI: China stocks rose on Wednesday, as investor sentiment remained upbeat on trade headlines ahead of a key leadership meeting between Beijing and Washington. Hong Kong markets were closed for a local holiday.

• China’s blue-chip CSI300 Index rose 0.5% by the lunch break, while the Shanghai Composite Index gained 0.4%.

• US President Donald Trump and Chinese leader Xi Jinping will discuss a trade framework to reduce US tariffs on Chinese goods in exchange for Beijing’s commitment to curb exports of fentanyl precursor chemicals, media reported on Tuesday.

• Investors are watching closely for details from the Trump-Xi meeting, which is expected to take place in South Korea on Thursday.

• Meanwhile, China unveiled a full proposal for its five-year development plan on Tuesday, which suggests the country aims to keep economic growth within a “reasonable range”. UBS economist Zhang Ning thinks that implies a growth target of 4.5%-5%.

• Market reaction was limited on the proposal as China just concluded its high-stakes plenum last week and vowed to boost consumption and technological innovation.

• China’s CSI New Energy Index rose more than 3% even as the five-year plan omitted electric vehicles from its list of strategic industries, marking their first exclusion in more than a decade.

• Stocks related to Nvidia concept broadly rose, with Guochuang Software up 13%, following a 5% overnight rally in the global chip giant.

• Non-ferrous metals shares jumped 3%.