Chinese Stocks Rise Amid Positive US-China Dialogue and Tech Sector Gains

Chinese stock markets edged higher on Monday despite uneven trading, buoyed by strong performances in Apple suppliers and semiconductor shares. The gains followed positive developments from high-level talks between the US and China.

The Shanghai Composite Index closed up 0.2% at 3,828.58, fluctuating between gains and losses throughout the session. Meanwhile, the blue-chip CSI300 index increased by 0.5%.

US President Donald Trump announced progress in negotiations with Chinese President Xi Jinping regarding TikTok, with plans for a face-to-face meeting in South Korea in six weeks to address broader issues including trade, drugs, and the conflict in Ukraine.

Goldman Sachs highlighted these advancements, indicating that US-China relations are expected to remain stable or improve in the coming months.

Tech sectors led the market rally, with the electronics sector surging 4.3% and the information technology sector hitting a five-year peak with a 4.1% rise. Shares of Apple suppliers soared after news emerged that OpenAI partnered with Luxshare to develop a new consumer device. Luxshare's stock surged by the daily maximum of 10%, while Goretek and Foxconn climbed 7.7% and 6.6%, respectively.

The semiconductor sector advanced 3.3%, and the AI segment added 2%, contributing further momentum to the market.

Conversely, financial stocks continued to drag the market lower. The banking sector declined 1% following a steep 4.2% drop last week, and insurance stocks slipped by 0.3%.

Analysts at Guotai Haitong noted that despite recent setbacks in financial stocks, improving geopolitical conditions and Federal Reserve rate cuts could support continued market gains.

In Hong Kong, the Hang Seng Index fell 0.8% to 26,344.14, with the technology sector down 0.6%.

At a press briefing, China Securities Regulatory Commission Chairman Wu Qing reiterated the regulator’s commitment to enhancing the quality of listed companies, attracting international investment, and maintaining stringent market oversight.