Sino-U.S. Trade Talks Leave Markets Unsteady

Chinese stocks found stability following an initial drop, while Hong Kong shares traded lower on Thursday, led primarily by declines in the technology sector. The markets struggled to maintain positive momentum from recent Sino-U.S. trade talks, which have provided limited substantial outcomes.

President Donald Trump stated that a trade truce between the world's two largest economies is back in motion after negotiators agreed on a framework to ease bilateral tariffs. As part of the agreement, Beijing will remove restrictions on rare earth mineral exports, and the U.S. will reinstate access to its universities for Chinese students. However, the details are still pending approval, with the 55% tariffs on Chinese imports remaining unchanged, according to U.S. Commerce Secretary Howard Lutnick.

Despite these developments, investor confidence remains lukewarm, as essential issues such as chip exports were not addressed, increasing the probability of future conflicts. The CSI Semiconductor Index experienced a 1.1% decline, reflecting broader market concerns, while major stocks like SMIC, Alibaba, and Xpeng showed notable losses.

(With inputs from agencies.)