US China trade deal: Chinese stocks surge as Hang Seng Index rises after US-China trade deal announced
Chinese stocks rose on June 11, bolstered by signs of easing trade tensions between the United States and China after a two-day meeting in London.
The meeting saw both countries agree on a preliminary framework to de-escalate trade conflicts, which helped restore investor confidence.
As reported by Bloomberg, the onshore CSI 300 Index, which tracks the largest companies on the Shanghai and Shenzhen stock exchanges, gained 1%, marking its most significant rise in nearly a month.
Meanwhile, a measure of Chinese stocks listed in Hong Kong advanced by 0.9%, reaching its highest point since March.
The market rally followed the announcement of an agreement between the US and China, which focused on the implementation of consensus reached earlier in Geneva.
Progress made in the trade talks, coupled with positive rhetoric from both sides, has raised hopes that the dispute between the two largest economies in the world could be heading towards resolution.
The agreement also addresses China's export restrictions on rare earth minerals and magnets, which have been a point of contention between the two nations.
US Commerce Secretary Howard Lutnick confirmed the framework at the conclusion of the London talks, highlighting its potential to put the trade truce back on track.
US and Chinese officials agreed on a framework to put their trade truce back on track and resolve China's export restrictions on rare earth minerals and magnets, US Commerce Secretary Howard Lutnick said https://t.co/VD241s4aGM pic.twitter.com/l0AVgwVqFW — Reuters (@Reuters) June 11, 2025
However, market reactions were largely muted, with S&P 500 futures showing little movement, and only modest fluctuations in the offshore yuan.
Chris Weston, head of research at Pepperstone, noted that the lack of significant market reaction suggested that the outcome of the talks had already been priced in.
The Daily Fix – Big trading levels in full view
US-China talks continue to progress well – superficially, at least – with talks set to spill over for a third day - a factor that keeps the bid in risk and the sellers feeling they may be able to execute orders at higher/better… — Chris Weston (@ChrisWeston_PS) June 10, 2025
'The devil will be in the details,' Weston said, emphasising the importance of how rare earths exports to the US are handled and the subsequent access for US-produced chips to China.
Despite the limited immediate impact on market movements, the outlook for a resolution in the trade conflict has provided Chinese and Hong Kong stocks with a positive boost ahead of further details from the ongoing trade talks.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Pakistan records largest drop in default risk among emerging markets
Listen to article Pakistan has achieved the world's steepest decline in sovereign default risk over the past year, leading Bloomberg Intelligence's Global Emerging Market (EM) Rankings for credit risk improvement, according to data released by the finance minister's adviser on Saturday. Bloomberg, the international financial information and media firm, has described Pakistan as the most improved economy in terms of reducing default risk. The report attributes this progress to renewed investor confidence, macroeconomic stabilisation, structural reforms, successful engagement with the International Monetary Fund (IMF), timely debt repayments, and positive credit outlooks from global rating agencies including Fitch and S&P. According to Bloomberg's research division, Pakistan's credit default swap (CDS)-implied probability of default declined from 59 per cent to 47 per cent over the last 12 months — an 11 percentage point drop and the largest reduction among emerging markets globally. This improvement outpaces other countries such as Argentina, Tunisia, and Nigeria, while some nations including Egypt, Gabon and Turkey have seen their default risks increase. Breaking: Pakistan Leads the World in Sovereign Risk Improvement - Tops Global EM Rankings As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by… — Khurram Schehzad (@kschehzad) June 28, 2025 Khurram Shehzad, adviser to the finance minister, took to social media platform X to highlight Pakistan's achievement, stating that the country 'stands out globally as the most improved economy in terms of reduction in sovereign default risk.' Read More: Pakistan, WB boost ties with $40b framework He further added that this 'marks the sharpest decline among major emerging markets,' and credited factors such as macroeconomic stabilisation, structural reforms, successful IMF engagement, and timely debt repayments for the positive trend. 'This is a resounding signal to global investors that Pakistan is not only back on the map — it is moving forward with stability, credibility, and reform at its core,' he said. Prime Minister Shehbaz Sharif welcomed the Bloomberg report, expressing satisfaction over the acknowledgment of Pakistan's economic stability. 'The report acknowledges important institutional reforms in various sectors, successful agreement with the IMF, and timely loan repayments, which are definitely evidence of improvement in the government's economic situation,' he remarked. Also Read: Global ranking of green passport improves He added that Pakistan was among the few countries to show the most economic improvement in the past year, according to Bloomberg's data, and said the country was advancing swiftly towards a stronger economic future. The prime minister attributed these gains to the sustained efforts and dedication of the government's economic team.
Express Tribune
10 hours ago
- Express Tribune
China expands compensation for flood-hit communities
A drone view shows buildings and roads are half submerged in floodwaters after heavy rainfalls, in Rongjiang county, Guizhou province, China June 24, 2025. China Daily via REUTERS/File Photo China has expanded the economic safeguards for segments of its population affected by flood control schemes in times of extreme rainfall, including pledges of direct compensation from the central government and payments for livestock losses. In China, diverting flood-waters to areas next to rivers is a major step in managing downstream flooding. As extreme rainfall grows in frequency, China is increasingly utilising such areas, some of which have been unused until now and have been populated by farms, croplands and even residential buildings, stoking social tensions. According to revised rules on compensation related to flood diversions released late on Friday, the central government will now bear 70% of all compensation funds, with local governments responsible for the rest. Previously, the ratio was to be decided based on actual economic losses and the fiscal situation of local governments. Livestock and poultry that cannot be relocated in time before the arrival of diverted flood-waters will also be included in the compensation scheme for the first time. Previously, only the loss of working animals could be claimed for compensation. Read: Cyclone threat looms as southern China battles widespread flooding In the summer of 2023, almost 1 million people in Hebei, a province on the doorstep of Beijing, were relocated after record rain forced authorities to divert water from swollen rivers to some populated areas for storage, triggering anger over the homes and farms sacrificed to save the Chinese capital. China currently has 98 designated flood diversion areas spanning major river basins including the Yangtze River basin, home to a third of the country's population. During the 2023 Hebei floods, eight flood storage areas were used. Since the start of the East Asia monsoon in early June, precipitation in the middle and lower reaches of the Yangtze has been up to two times higher than usual, officials from the China Meterological Administration told reporters on Friday. In other parts of China, daily rainfall measured by 30 meteorological stations in provinces such as Hubei and Guizhou broke records for the month of June, they said. Guizhou was the focal point of China's flood alleviation efforts this week, with one of its cities hit by flooding on a scale that meteorologists said could only happen once in 50 years, and at a speed that shocked its 300,000 residents. That prompted Beijing to issue pledges on Thursday to move vulnerable populations and industries to low-flood areas and allocate more space for flood diversion.
Express Tribune
10 hours ago
- Express Tribune
Trump denies reports of $30bn nuclear offer to Iran
US President Donald Trump walks on the day of a "One Big Beautiful" event at the White House in Washington, DC., US, June 26, 2025. PHOTO: REUTERS Listen to article US President Donald Trump dismissed media reports that said his administration had discussed possibly helping Iran access as much as $30 billion to build a civilian-energy-producing nuclear program. CNN reported on Thursday and NBC News reported on Saturday that the Trump administration in recent days had explored possible economic incentives for Iran in return for its government halting uranium enrichment. The reports cited sources. CNN cited officials as saying that several proposals were floated and were preliminary. "Who in the Fake News Media is the SleazeBag saying that 'President Trump wants to give Iran $30 Billion to build non-military Nuclear facilities.' Never heard of this ridiculous idea," Trump wrote on Truth Social late on Friday, calling the reports a "HOAX." Since April, Iran and the US have held indirect talks aimed at finding a new diplomatic solution regarding Iran's nuclear program. Tehran says its program is peaceful and Washington says it wants to ensure Iran cannot build a nuclear weapon. Trump, earlier this week, announced a ceasefire between US ally Israel and its regional rival Iran to halt a war that began on June 13 when Israel attacked Iran. The Israel-Iran conflict had raised alarms in a region already on edge since the start of Israel's war on Gaza in October 2023. The US struck Iran's nuclear sites over the last weekend and Iran targeted a US base in Qatar on Monday in retaliation, before Trump announced the ceasefire. Israel is the only Middle Eastern country widely believed to have nuclear weapons and said its war against Iran aimed to prevent Tehran from developing its own nuclear weapons.
