Shanghai stocks hit 9-month high on easing Sino-US trade woes

Mainland China stocks edged higher on Friday, with the benchmark Shanghai index ending at a nine-month high on fresh signs of easing Sino-U.S. trade tensions, while Hong Kong shares slipped.

** The U.S. has told GE Aerospace it can restart jet engine shipments to China's COMAC, a source told Reuters. ** The United States lifted restrictions on exports to China for chip design software developers and ethane producers.

** Meanwhile, China is reviewing and approving export licences for controlled items and has been informed by the U.S. about cancellations of "restrictive measures" against Beijing, its commerce ministry said. ** The Shanghai Composite index gained 0.32% to end at 3,472.32 points, the highest closing since October 8, 2024. For the week, the benchmark rose 1.4%.

** The blue-chip CSI300 index rose 0.36% to 3,982.2 points, the loftiest finish since March 19. For the week, the index climbed 1.54%. ** The banking sector was among the top gainers, with a sub-index tracking the industry closing 1.86% higher at a record high. The sub-index gained 3.81% for the week.

** The steel sector also outperformed after China's top leaders pledged to tighten oversight of aggressive price-cutting by domestic firms, as the economy grapples with persistent deflationary pressures. The CSI steel sub-index gained 0.58%. ** "It could be a prelude to potential supply side reform 2.0, in our view," Citi analysts said.

** "We see the prolonged PPI deflation and profitability concerns as the motives this time. Steady growth so far this year has also opened room for such an initiative." ** Citi identified sectors where reform is most urgently needed - ferrous-metal processing (mostly steel), fuel processing, chemicals, non-mineral products (including cement, glass) and metal products.

** Hong Kong's benchmark Hang Seng index lost 0.64% to 23,916.06 points, while the Hang Seng China Enterprises index fell 0.45% to 8,609.27 points.

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