Chinese Stocks Surge to 10-Year High Amid Trade Optimism and Strong Earnings

Chinese stocks soared to a decade-high on Wednesday, driven by bullish earnings and positive trade news that lifted investor morale. The energy and non-ferrous metal sectors were notable performers, setting the stage for a crucial meeting between U.S. President Donald Trump and Chinese President Xi Jinping.

With the blue-chip CSI300 Index climbing 1.1% to its highest level since January 2022, and the Shanghai Composite Index increasing 0.6% to its best since July 2015, optimism is brewing over a potential trade agreement. Talks in South Korea could reduce tariffs on Chinese goods, particularly in the tech sector, where Nvidia's AI chips are a focal point.

Despite the proposed five-year plan omitting electric vehicles as a strategic industry, market response was muted. Analysts anticipate the reduction of effective tariff rates on Chinese goods to about 30%, with a strategic focus on bolstering consumption and technological innovation. This follows China's high-stakes plenum and commitment to maintaining economic growth within a targeted range.