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Zhang Shidong

The run-up that drove Hong Kong stocks to the highest level in more than three and a half years continued on Wednesday after the US pencilled in a fresh round of trade talks with China for next week and clinched a deal with Japan, reducing concerns about damage to the global economy and corporate earnings.
The Hang Seng Index rose for a fourth day, gaining 1.6 per cent to 25,538.07 for the highest close since November 17, 2021. The Hang Seng Tech Index gained 2.5 per cent.
On the mainland, the CSI 300 Index and the Shanghai Composite Index both added less than 0.1 per cent.
Biotech firm Wuxi Biologics jumped after it received approval for five manufacturing facilities in the US. Alibaba Group Holding and Tencent Holdings also advanced.
US Treasury Secretary Scott Bessent said on Fox Business that he would meet his Chinese counterparts in Stockholm next week for a third round of trade talks. China’s commerce ministry confirmed that the negotiation would take place from July 27 to 30. A 90-day tariff pause between China and the US expires on August 12, after two rounds of negotiations in Geneva and London brought down levies on imports from each nation.
Meanwhile, President Donald Trump said on Tuesday that the US and Japan had struck a trade deal that would impose a 15 per cent tariff on imports from the Asian country and include US$550 billion of Japanese investments in America. The market had expected a 25 per cent rate. That marked a breakthrough in the US’ tariff negotiations with its key trading partners since the April “Liberation Day.”
“There are emerging signs of an improvement in China-US ties,” said Yang Jiani, an analyst at Sinolink Securities. “This round of trade talks would aim at promoting cooperation between the two nations and set the stage for a future meeting of the top leaders. Most probably, we’ll see an extension of the tariff pause from the talks.”
The detente in China-US trade tensions may add more fuel to the gain that has lifted the Hang Seng Index by 26 per cent this year. China’s better-than-expected second-quarter economic growth and hopes of imminent interest rate cuts by the Federal Reserve have spurred inflows to the city’s stocks. Investors also increased bets that at a coming Politburo meeting, China would roll out more measures to cut excess capacity in some emerging industries, dialling up the so-called anti-involution drive.
“Policy changes seem to be on the way with the pickup in the ‘anti-involution’ campaign while [mainland] and international investors are likely to provide flow support as valuation remains attractive versus other mainland assets and global equity markets,” said James Wang, head of China strategy at UBS Group.
Wuxi Bio advanced 2.7 per cent to HK$28.75, and affiliate Wuxi AppTec rose 1.6 per cent to HK$93.15. Alibaba climbed 2.5 per cent to HK$120.90, and Tencent rallied 4.9 per cent to HK$552.
Separately, overseas investors bought a net US$10.1 billion of Chinese yuan-denominated stocks and funds in the first half, reversing outflows over the past two years, China’s foreign-exchange regulator said on Tuesday.
Japan was the biggest gainer in Asia. The Nikkei 225 jumped 3.5 per cent after local media reported that Japanese auto exports to the US would also be subjected to the universal 15 per cent tariff rate. Australia’s S&P/ASX 200 added 0.7 per cent, while South Korea’s Kospi rose 0.1 per cent.


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A US deal with Japan and scheduled talks with China reduce concerns about damage to the global economy from trade conflicts


A US deal with Japan and scheduled talks with China reduce concerns about damage to the global economy from trade conflicts.


Hong Kong stocks sustain 3-year-high level as headway on trade talks spurs optimism

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}A US deal with Japan and scheduled talks with China reduce concerns about damage to the global economy from trade conflicts

A US deal with Japan and scheduled talks with China reduce concerns about damage to the global economy from trade conflicts