China Stocks Soar Amid Eased Trade Tensions and Hydropower Surge

China's stock market has been on an upward trajectory, marking its fifth consecutive session of growth, driven by a lessening of Sino-U.S. trade tensions and a trillion-yuan hydropower project in Tibet. Both the Shanghai Composite and blue-chip CSI300 indexes reached eight-month highs. Meanwhile, Hong Kong's Hang Seng soared to its highest level since 2021. These gains reflect investor confidence bolstered by Beijing's recent economic policies and discussions with U.S. counterparts.

Huatai Securities noted a swift decrease in external and internal economic challenges. This positive backdrop coincides with an increase in market activities, including margin financing, which has surged to its highest level in months. On a related front, U.S. and Chinese officials plan to meet in Stockholm to discuss extending the trade deal deadline, with U.S. Treasury Secretary Scott Bessent expressing optimism regarding the trade relationship.

The tech sector, particularly sensitive to Sino-U.S. relations, also demonstrated strong performance. Chinese tech stocks rose, contributing to the overall bullish market sentiment. This upturn is further amplified by investor expectations that industries like steel and solar energy will reap benefits from China's strategic industrial restructuring.

(With inputs from agencies.)