China stocks hit 2-week high on U.S. trade deal hopes

  • Markets
  • Thursday, 10 Oct 2019

HONG KONG: China's stocks climbed to a two-week high on Thursday as investors hoped for a partial trade deal between Washington and Beijing, but a report stating Chinese officials are looking to cut short their visit to the U.S. capped gains.

The Shanghai Composite index closed up 0.8% at 2,947.71 points, its highest level since September 26. The blue-chip CSI300 index also gained 0.8% on Thursday.

Among sectors, CSI300's financial sector sub-index rose 0.2%, the consumer staples sector gained 1%, while the real estate index fell 0.1%.

The smaller Shenzhen index rose 1.4% and the start-up board ChiNext Composite index was higher by 2.7%.

The White House is weighing a currency pact with China as part of a partial deal that could see a planned tariff hike next week being suspended and part of what it regards as a first-phase agreement with Beijing, Bloomberg cited people familiar with the talks as saying on Wednesday.

U.S. President Donald Trump said on Wednesday there was a very good chance that the United States and China will reach a trade agreement, but added that "in my opinion China wants to make a deal more than I do".

The United States will soon issue licences for some of its firms to supply non-sensitive goods to banned Chinese telecoms firm Huawei Technologies Co Ltd, the New York Times said on Wednesday, citing people familiar with the matter.

The United States and China made no progress in deputy-level trade talks held on Monday and Tuesday in Washington, the South China Morning Post (SCMP) said, citing unnamed sources with knowledge of the meetings.

The report also stated that the Chinese delegation, headed by Vice Premier Liu He, is planning to leave Washington on Thursday after just one day of minister-level meetings.

Chinese organisers on Wednesday cancelled a fan event on the eve of a National Basketball Association (NBA) exhibition game in Shanghai, the latest fallout in a growing dispute over a tweet by a team official supporting protests in Hong Kong.

But analysts at Founders Securities said the A-share market has already absorbed the downside effect of the trade talks, writing in a note on Thursday "the worst result is the expected result, even if the negotiation's results are a little above expectation, global capital markets will react positively."

About 13.42 billion shares were traded on the Shanghai exchange, close to the previous trading session's 13.04 billion.

The Shanghai stock index is above its 50-day moving average and above its 200-day moving average. - Reuters

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Shanghai Composite index , CSI300


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