FX.co ★ China Stocks Rise on Stimulus, Trade Optimism

The Shanghai Composite index increased by 0.2% to approximately 3,350, while the Shenzhen Component rose by 0.6% to 10,160 on Thursday. These gains extended the recent positive trend, spurred by new stimulus measures and optimism about the upcoming US-China trade discussions. On the previous day, China's central bank unveiled plans to reduce key lending rates by 10 basis points and decrease the banks' reserve requirement ratio by 50 basis points to support economic growth. Further fueling the positive sentiment, China confirmed that Vice Premier He Lifeng is set to meet with US Treasury Secretary Scott Bessent in Switzerland later this week, marking the first direct talks aimed at addressing tariff tensions amid the ongoing trade conflict. Despite this diplomatic initiative, President Donald Trump affirmed that he would not lower tariffs as a precondition for starting formal negotiations. Technology stocks spearheaded the rally, with significant gains from Eoptolink Technology (up 8.4%), Avic Chengdu (up 13.7%), Luxshare Precision (up 3.3%), and Zhongji Innolight (up 6%).