The Shanghai Composite Index rose 0.5% throughout the day, climbing back above 3,400 points. Rare earth stocks performed well, with CATL rising 3%

According to Bloomberg, after trade negotiations held in London between representatives from China and the United States, both sides stated that the trade tensions have eased and a preliminary agreement has been reached on how to implement the consensus achieved in Geneva. The U.S. negotiating representative expressed that the U.S. absolutely hopes that the issue of rare earth magnet transportation will be resolved with the implementation of the framework agreement.

The People's Bank of China today (11th) conducted a 164 billion yuan (the same below) seven-day reverse repurchase operation in the open market, with the operation interest rate remaining at 1.4%. Today, 214.9 billion yuan of reverse repos are maturing, resulting in a net withdrawal of 50.9 billion yuan for the day. The central parity rate of the yuan against the U.S. dollar is reported at 7.1815, up 25 points.

The three major A-share indices rebounded, with the Shanghai Composite Index rising above 3,400 points, up 17 points or 0.5%, closing at 3,402 points, with a turnover of 501.8 billion yuan; the Shenzhen Component Index rose 83 points or 0.8%, closing at 10,246 points, with a turnover of 753.65 billion yuan; the ChiNext Index rose 24 points or 1.2%, closing at 2,061 points, with a turnover of 360.5 billion yuan.

In the banking sector, China Construction Bank (601939.SH) fell 0.6%, while Industrial and Commercial Bank of China (601398.SH) rose 0.3%.

Oil stocks were favored, with PetroChina (601857.SH) and CNOOC (600938.SH) rising 1.5% and 0.5%, respectively.

Rare earth stocks saw significant gains in the afternoon, with Shenghe Resources (600392.SH), Sinomag (300835.SZ), and Jinchuan Magnet (300748.SZ) rising between 3.5% and 7.9%. Jinchuan Magnet received permits to export to Europe, America, and Southeast Asia.

Innovative drug concept stocks experienced profit-taking, with Sinovac Biotech (688136.SH) and Haisco Pharmaceutical (300584.SZ) falling 8.6% and 9.5%, respectively.

In addition, BYD (002594.SZ) rose 2.5%, as the company committed to a supplier payment period not exceeding 60 days. CATL (300750.SZ) rose 3%