2025.05.0607:24:00UTC+00China Stocks Gain on US-China Trade Optimism

The Shanghai Composite Index saw a significant rise of 1.13%, ending at 3,316, while the Shenzhen Component Index soared by 1.84% to reach 10,082 in Tuesday's post-holiday session. The rally led to mainland stocks achieving their highest levels in a month, driven by renewed optimism regarding a potential US-China trade agreement. Last Friday, Beijing expressed readiness to engage in trade discussions with Washington, on the condition that the US first withdraw its unilateral tariffs as a sign of goodwill. Meanwhile, US President Donald Trump slightly dampened expectations by clarifying he has no plans to converse with Chinese President Xi Jinping within the week, though he did not rule out the possibility of reducing the prevailing 145% tariff on Chinese goods. On the economic landscape, China's services sector displayed some vulnerability, with data from April indicating growth had slowed to its weakest pace in seven months, impacted by trade disruptions affecting new business orders. In the equity market, technology stocks were at the forefront, with Talkweb Information climbing 5%, Shijiazhuang Changshan rising 10%, and Jiangsu Hoperun advancing by 8.7%.