FX.co ★ China Stocks Rise on Trade Optimism

On Tuesday, the Shanghai Composite experienced a slight uptick of 0.04% to reach 3,862, while the Shenzhen Component rose by 0.45% to 13,064. This recovery follows losses from the previous session, spurred by indications of progress in the US-China trade negotiations occurring in Spain. President Donald Trump of the US and China's President Xi Jinping are scheduled for discussions on Friday aimed at finalizing the agreements, which include conversations about the divestment of TikTok, a Chinese-owned entity. US Treasury Secretary Scott Bessent confirmed that the commercial terms have already been settled. Aligning with a global trend, Chinese stocks rose as investors anticipated a potential Federal Reserve rate cut later this week. Additional encouragement stemmed from increased foreign investments in mainland markets, driven by optimism surrounding China's ambitions in artificial intelligence and the broader tech sector. Technology stocks were at the forefront of this rise, with notable gains from Victory Giant at 5.3%, Dawning Information at 8.8%, and Hygon Information at 6.3%.