Shanghai Stocks Climb for Third Day on US-China Trade Talk Optimism.
Investors buoyed by positive signals from Washington, but loomimg trade data and unresolved issues keep gains in check.
Shanghai, China – Chinese stocks recorded their third consecutive day of gains on Wednesday, as investor sentiment was lifted by growing optimism surrounding the ongoing trade negotiations between the United States and China. The Shanghai Composite Index rose 0.45% to close at 3,634, while the Shenzhen Component added 0.64% to finish at 11,178.
The positive momentum was largely fueled by comments from U.S. President Donald Trump, who suggested that a deal to extend the current trade truce beyond its August 12 deadline was “very close.” He also indicated a potential meeting with Chinese President Xi Jinping could take place before the end of the year, once an agreement is reached.
Further bolstering investor confidence, U.S. Trade Representative Jamieson Greer described recent discussions with Chinese officials as “very positive” and confirmed that the August 12 deadline is a topic of discussion. The talks have reportedly centered on key issues, including the supply of rare earth magnets.
However, some market watchers remain cautious. While welcoming the positive rhetoric, traders are waiting for concrete details before making significant moves. Adding a layer of uncertainty, some reports indicated that top officials had not reached an agreement on extending the tariff pause during recent talks in Stockholm, with the final decision resting with President Trump.
Investors are also keenly awaiting a series of fresh economic data from China this week, which will provide a clearer picture of the domestic economy’s health amid the shifting global trade landscape. China is expected to release its July trade balance and foreign exchange reserves on Thursday, followed by key inflation data, the Consumer Price Index (CPI) and Producer Price Index (PPI), on Saturday.
Among the day’s top-performing stocks were China CSSC, which surged 10%. Other notable gainers included Victory Giant Technology, climbing 4.3%, Sunward Intelligent Equipment Group with a 1.9% rise, Eoptolink Technology up 2.2%, and Wolong Electric Drive Group, which saw its shares increase by 6.7%.
