China, Hong Kong stocks rally on trade deal optimism

Oct 21, 2025, 11:41 GMT+7
By Jiaxing Li
Reuters - China and Hong Kong shares extended gains on Tuesday on expectations that the tensions between the world's top two economies will ease, while upbeat earnings surprise further boosted risk appetite.
** At the midday break, the Shanghai Composite indexwas up 1.2% at 3,910.13 points. The blue-chip CSI300 indexwas up 1.5%.
** Hong Kong's Hang Seng Index was up 1.7% and the tech indexgained 2.6%.
** U.S. PresidentDonald Trumpsaid on Monday he expects to reach a fair trade deal with Chinese President Xi Jinping, while he downplayed risks of a clash over the issue of Taiwan. This comes on the heels of Trump's comments on Friday that the hefty tariff on China is "not sustainable".
** Most investors now "do not expect a meaningful derail of the US-China trade talks," Bank of America analysts said in a note, citing recent marketing feedback.
** More investors are of the view that both parties will muddle through and eventually reach an agreement, and an in-person Trump-Xi meeting during APEC by the end of month is still the base case, the analysts added.
** Leading gains on Tuesday, the AI sectorjumped 3.7% and semiconductor-related shares jumped more that 2%.
** Chip designer Wingtechrallied as much as 9.2%, as investors focused on negotiations over its subsidiary Nexperia's seizure this week.
** Apple's Chinese suppliers also strengthened, with the consumer electronics index (.CSI931494) up 3.5% after the phone maker's share price surged to all-time high on strong iPhone 17 demand.
** HK-listed shares of CATL rallied nearly 6% in morning trades after reporting a 41.2% surge in quarterly net profit.

Sumber : Reuters