HONG KONG: Chinese markets opened higher on Wednesday, buoyed by investor optimism ahead of upcoming Sino-US trade talks this weekend and Beijing’s plans to roll out additional stimulus measures.
The blue-chip CSI 300 Index jumped 1.4% at open, the highest level since April 3, while the Shanghai Composite Index climbed 1.2%.
In Hong Kong, the benchmark Hang Seng Index jumped 2.2% to the highest level in nearly five weeks.
US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China’s top economic official in Switzerland on Saturday, US officials said, in what could be a first step toward resolving a trade war disrupting the global economy.
Beijing has also stepped up efforts to stimulate economic growth amid looming tariff risks.
China, HK stocks gain on trade deal hopes
The People’s Bank of China will cut loan prime rate - a key benchmark for setting lending rates in China - by 10 basis points, personal housing provision fund rate by 25 basis points, and set up 500 billion yuan in re-lending loans for elderly care and service consumption, Governor Pan Gongsheng said on Wednesday.
China’s offshore yuan slipped to 7.2140 per dollar following the rate-cut announcements.
The three indexes have nearly recouped all losses incurred since April 2, when US President Trump slapped punitive tariffs on trading partners and triggered a global market selloff.