Trade Truce Teeters: China's Stocks Stumble Amid Unsteady Sino-U.S. Negotiations
China and Hong Kong stocks experienced declines, particularly in rare-earth and tech sectors, despite a U.S.-China trade deal framework intending to ease tension. Investors remained cautious due to the lack of detailed terms, affecting major stock indices.
China and Hong Kong stocks fell sharply on Thursday. This decline was led by weaker performance in the rare-earth and technology sectors. Despite reaching a framework deal aimed at easing the prolonged Sino-U.S. trade tensions, markets saw little sustained positive momentum, leaving investors wary.
The agreement, as announced by U.S. President Donald Trump, intends to restore the fragile truce in the trade war by addressing tariff rates and removing Chinese export restrictions on rare-earth minerals. It also opens the doors to Chinese students at U.S. universities; however, the specifics of the deal remain sparse.
As a result, China's blue-chip CSI300 Index dropped 0.6%, while Hong Kong's Hang Seng index fell 0.7%. Additionally, the CSI Rare Earth Index and Hang Seng Tech Index recorded losses, with declines of 0.8% and 1.5%, respectively.
(With inputs from agencies.)
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