Hang Seng Index ends up on progress in trade talks
Hang Seng Index ends up on progress in trade talks
The Hang Seng Index ended up 204.07 points, or 0.84 percent, at 24,366.94. File photo: RTHK
Mainland Chinese and Hong Kong stocks climbed on Wednesday, lifted by optimism over progress in Sino-US trade talks, although investors awaited further details on the framework agreed upon by the two countries.
In Hong Kong, the benchmark Hang Seng Index ended up 204.07 points, or 0.84 percent, at 24,366.94.
In the mainland, the benchmark Shanghai Composite Index ended up 0.52 percent to 3,402.32.
The Shenzhen Component Index closed 0.83 percent higher at 10,246.02.
The gains came after US and Chinese officials said they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade differences.
"This is positive news to the market," said Mark Dong, co-founder of Minority Asset Management.
"At least now there's a bottom line that neither side is willing to cross.
"Going forward, both sides will move toward reducing the trade imbalance."
Zeng Wenkai, the chief investment officer at Shengqi Asset Management, said markets had likely expected the outcome.
"People have realised that kneeling gets you nowhere – in fact, it only invites more bullying," Zeng said, adding that countries are now adopting a tougher stance in negotiations with the United States.
The CSI Rare Earth Index gained more than 3 percent, while China's semiconductor index fell 0.1 percent.
"The details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US-produced chips to head East," said Chris Weston, head of research at Pepperstone.
"But for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported."
Tech majors traded in Hong Kong advanced 1.1 percent
China's auto stocks climbed nearly 2 percent after several major automakers, including BYD, Chery and Geely, pledged to pay suppliers within 60 days. (Reuters/Xinhua)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RTHK
3 hours ago
- RTHK
Businessman Charles Ho dies at 75
Businessman Charles Ho dies at 75 Charles Ho was once the chairman of Sing Tao News Corporation, and served as a standing committee member of the country's political advisory body. File photo: RTHK Tobacco and media tycoon Charles Ho has died at the age of 75. In February, he revealed that he had been diagnosed with lung cancer a few months prior and he had since recovered after receiving treatment. Ho previously served as a standing committee member of the Chinese People's Political Consultative Conference (CPPCC). He oversaw the operations of Sing Tao News Corporation as chairman before he sold his shares in 2021. The businessman also inherited the Hong Kong Tobacco Company from his grandfather, Ho Ying-chie, who founded the firm. In 2014, Ho was awarded the Grand Bauhinia Star by the government under then-Chief Executive CY Leung. Paying tribute on social media on Thursday, Leung called the news "a shock" and said the two had met over dinner just several weeks ago. The former SAR leader had words of praise for Ho, who he called a "philosophical person". Leung added that Ho "had a keen understanding of politics and the world, and never said one thing and meant another".
RTHK
7 hours ago
- RTHK
Workers urged to report labour import violations
Workers urged to report labour import violations Chris Sun says workers can call a Labour Department hotline if they suspect they have been laid off illegally. Photo: RTHK Labour minister Chris Sun on Thursday said people who suspect they were laid off by their employer in order to be replaced by workers from outside the city should file official complaints. Sun said he is aware that some people have been making such claims recently, stressing that such moves by employers would be illegal. He added that by law, companies are required to employ two local people for every imported worker they have on their books. Sun said officials will investigate complaints made through the Labour Department's 2150 6363 hotline. The minister said more spot checks will also be conducted, especially in the catering sector. "If officials find and confirm any violation during the checks, we will consider imposing executive sanctions against the company," he told reporters after attending an event. "These include cancelling the labour import quota allocated to the firm, or that for a certain period of time going forward, we will refuse all their import applications." Sun stressed that local workers will always get priority when it comes to jobs. Meanwhile, the minister said around 100 former employees of King Parrot Group have sought help from the Labour Department over HK$9 million in unpaid wages and severance pay. The group, which owned a number of restaurants, informed staff earlier this week that it was ending its operations.
RTHK
7 hours ago
- RTHK
Tech losses lead Hang Seng Index to lower close
Tech losses lead Hang Seng Index to lower close The benchmark Hang Seng Index ended the day down 331.56 points, or 1.36 percent, to close at 24,035.38. File photo: RTHK Stocks in mainland China and Hong Kong ended mostly lower on Thursday, led by declines in the tech sector, as markets struggled to sustain the positive momentum from the Sino-US trade talks that lacked concrete details. In Hong Kong, the benchmark Hang Seng Index ended the day down 331.56 points, or 1.36 percent, to close at 24,035.38. The Hang Seng China Enterprises Index slid 1.53 percent to end at 8,729.96 while the Hang Seng Tech Index slumped 2.20 percent to 5,331.33. Mainland Chinese stocks ended up mixed, with the benchmark Shanghai Composite Index up 0.01 percent at 3,402.66 and the Shenzhen Component Index closed 0.11 percent down at 10,234.33 The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 0.26 percent to close at 2,067.15. Among major losers, chipmaker SMIC fell 2 percent to a one-week low. Alibaba weakened 3.2 percent and EV maker Xpeng slid 6.7 percent. The CSI Rare Earth Index closed flat after slipping nearly 1 percent in the morning session and continued to hover near its seven-month high. A trade truce between the world's two biggest economies was back on track, US President Donald Trump said, a day after negotiators from Washington and Beijing agreed on a framework to ease bilateral retaliatory tariffs. Under the agreement, Beijing will lift export curbs on rare earth minerals and the United States will restore Chinese students' access to its universities, Trump said on Truth Social. Yet the terms remain subject to final approvals, with details notably absent. The 55 percent tariffs on Chinese imports will also stay, US Commerce Secretary Howard Lutnick said. "We still don't know if what Trump says will actually happen. It's disappointing that the tariffs rates were not dialled down at all and tech curbs on China were not even mentioned," said Jason Chan, senior investment strategist at Bank of East Asia, Hong Kong. The talks left key issues, like chip exports, unaddressed, leaving room for conflicts in the future, and no one knows for how long the current truce will last, he added. Chinese markets have been struggling to recover from trade shocks for the past two months after Trump announced sweeping tariffs on April 2 that threatened the global trade system. The CSI 300 Index has barely eked out any gains since then, while the Hang Seng Index has climbed 3.5 percent, but the two are underperforming the nearly 10 percent bounce in the MSCI World Index . The market is less sensitive to trade talks and investors are shifting focus to economic fundamentals, Wang Zhuo, partner at Zhuozhu Investment, said. "The key for China now is to bolster manufacturers' confidence and break the deflationary trend." (Reuters/Xinhua)
