HONG KONG: China and Hong Kong stocks rose on Monday, led by technology and property shares, as investors hoped the US and China would extend a trade truce when presidents Donald Trump and Xi Jinping meet this week.
At market close, the Shanghai Composite index was up 1 percent at 3,949.91 points. China’s blue-chip CSI300 index was up 0.7 percent.
The start-up board ChiNext Composite index was higher by 0.8 percent and Shanghai’s tech-focused STAR50 index was up 0.3 percent. The CSI AI Index added 1.1 percent.
Tech shares gained after US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded talks in New York on Sunday, with the US side proposing a new AI safety notification mechanism ahead of the Trump-Xi summit for September 23-25.
Market expectations for the meeting are tempered, but the main focus is whether the leaders will signal an extension to a trade truce struck last year.
“Overall, we think both sides will seek to maintain relative stability in US-China relations, although a broad bilateral agreement appears unlikely,” analysts at Goldman Sachs said in a note.
Among other gainers, the real estate sector surged 6.9 percent and the defence sector added 2 percent.
Healthcare rose 3.6 percent after a Reuters report that the US is working on rules for pharmaceutical companies investing in China that would likely preserve their ability to strike most licensing deals for Chinese drugs.
In Hong Kong, the benchmark Hang Seng Index was up 1.2 percent at 25,042.71, and the Hang Seng Tech Index was up 0.4 percent.
Share markets edged higher in Asia on Monday as chipmakers climbed, while oil eased on reports that more oil was finding its way out of the Middle East than previously thought.
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