China stocks on track for best day in a month ahead of Trump-Xi meeting; Hong Kong rises
- China’s large-cap CSI300 Index and the Shanghai Composite Index were up about 1% by the lunch break
SHANGHAI: China stock benchmarks are on track to log their best day in a month on Friday, while Hong Kong shares also gained, as traders expect trade tensions to ease after next week’s meeting between US and Chinese presidents.
China’s large-cap CSI300 Index and the Shanghai Composite Index were up about 1% by the lunch break, on track for their biggest one-day gain since mid-August.
In Hong Kong, the Hang Seng Index climbed 0.7%.
US President Donald Trump will welcome his Chinese counterpart Xi Jinping in Washington next week for their second meeting this year, as the two leaders seek stability in a fraught relationship.
US Trade Representative Jamieson Greer said this month the countries will make “some announcements on agriculture and non-tariff barriers” and traders will be watching for progress on an agreed mutual tariff reduction covering $30 billion in goods.
With US rate hike also in the rearview mirror, “the external risks have weakened,” Great Wall Securities said in a note.
Bets on China’s AI and chipmaking sectors are still advisable, the brokerage said.
Goldman Sachs said that despite China’s economic headwinds from weak domestic demand, “we continue to see several bright spots in the economy, including the global expansion of Chinese companies.”
China’s chipmaking and AI stocks jumped on Friday.
The CSI Integrated Circuits Index surged 5%, while the CSI AI index gained 3%.
Semiconductor and AI stocks also led gains in Hong Kong.
But energy and consumer shares weakened in both markets, reflecting investors’ preference toward “new economy” stocks. ‑Reuters