China stocks hit 45-month high on US plan to cut fentanyl-linked tariffs
Reduction would lower tariffs on Chinese imports to about 45 per cent, making them more competitive with those of other US trading partners
The CSI 300 Index climbed 1.2 per cent to 4,747.84 at the close, a level not seen since January 24, 2022. The Shanghai Composite Index added 0.7 per cent to 4,016.33, finishing above the 4,000-point mark for the first time since 2015.
Hong Kong’s market was shut for a public holiday.
Technology stocks paced the gains, with a sub-gauge of the sector on the CSI 300 rising 1.6 per cent after China promoted tech self-sufficiency as the key task in a detailed five-year plan outlining the nation’s development through 2030, released on Tuesday evening. Ping An Insurance Group gained 2.1 per cent to 58.95 yuan after third-quarter profit increased 45 per cent from a year earlier on rising investment gains. Telecoms equipment maker ZTE tumbled 6.5 per cent to 46.20 yuan after posting an 88 per cent slump in quarterly net income.
The latest geopolitical development added to the positive mood of a rally fuelled by a de-escalation of China-US tensions following a preliminary deal reached between the two nations earlier this week. The agreement covers a wide array of issues including an extension of the deadline for a tariff truce and a deferral of rare earth export tightening, and is subject to review by the state leaders. The CSI 300 Index has risen more than 2 per cent in October, heading for its sixth straight monthly gain.
“The China-US talks are going pretty well, removing the uncertainty of the trade frictions, and that will keep boosting the risk appetite on the market,” said Cheng Qiang, an analyst at Topsperity Securities. “The market is expected to continue the upwards momentum, and tech would be the key theme to trade on.”