China stocks rise as market awaits Trump-Xi meeting
China stocks rose on Wednesday, with the CSI300 Index up 0.5% and the Shanghai Composite Index gaining 0.4%, as investors remained optimistic ahead of the Trump-Xi meeting on trade. The meeting is expected to address U.S. tariffs on Chinese goods and fentanyl exports. Meanwhile, China presented its five-year development plan, targeting economic growth of 4.5%-5%. The CSI New Energy Index rose over 3%, despite electric vehicles being excluded from strategic industries. Stocks related to Nvidia also saw gains, with Guochuang Software up 13%.
SHANGHAI, Oct 29 (Reuters) - China stocks rose on Wednesday, as investor sentiment remained upbeat on trade headlines ahead of a key leadership meeting between Beijing and Washington. Hong Kong markets were closed for a local holiday.
China’s blue-chip CSI300 Index (.CSI300) rose 0.5% by the lunch break, while the Shanghai Composite Index (.SSEC) gained 0.4%.
U.S. President Donald Trump and Chinese leader Xi Jinping will discuss a trade framework to reduce U.S. tariffs on Chinese goods in exchange for Beijing’s commitment to curb exports of fentanyl precursor chemicals, media reported on Tuesday.
Investors are watching closely for details from the Trump-Xi meeting, which is expected to take place in South Korea on Thursday.
Meanwhile, China unveiled a full proposal for its five-year development plan on Tuesday, which suggests the country aims to keep economic growth within a “reasonable range”. UBS economist Zhang Ning thinks that implies a growth target of 4.5%-5%.
Market reaction was limited on the proposal as China just concluded its high-stakes plenum last week and vowed to boost consumption and technological innovation.
China’s CSI New Energy Index (.CSI399808) rose more than 3% even as the five-year plan omitted electric vehicles from its list of strategic industries, marking their first exclusion in more than a decade.
Stocks related to Nvidia (NVDA.O) concept broadly rose, with Guochuang Software (300520.SZ) up 13%, following a 5% overnight rally in the global chip giant.
Non-ferrous metals shares (.CSISNMIM) jumped 3%.
