On mainland China, the Shanghai and Shenzhen markets rose by 0.51% and 0.34% respectively at the midday break. The CSI 300 index, which tracks the top 300 stocks on these two financial centers, advanced by 0.6%.
The benchmark index of the Hong Kong Stock Exchange, the Hang Seng, reversed early session losses and climbed 0.09% by midday.
The exception was Beijing’s market, the third in mainland China, which fell by 0.33%. This market is less significant due to its recent inception in 2021 and focus on small and medium-sized enterprises.
China’s Ministry of Commerce confirmed today the extension of the truce with the United States, a decision anticipated by analysts following negotiations held in London and Stockholm in June and July respectively.
The original agreement, reached in May in Geneva, resulted in Washington reducing tariffs on Chinese products from 145% to 30%, while Beijing decreased its tariffs on American goods from 125% to 10%.
In Stockholm, both sides reiterated their intent to prioritize dialogue and avoid an escalation that almost led to a ‘de facto’ trade embargo between the world’s largest economies.
In the previous meeting in London, China committed to expediting export licenses for rare earths and the United States lifted some restrictions on Beijing, including controls on chip exports.
On Monday, China’s Ministry of Foreign Affairs called for “efforts” from Washington to achieve a “positive outcome based on equality, respect, and mutual benefit”.
