Hong Kong stocks gain as China and US hold talks to boost trade and Biden drops Tiktok, WeChat ban

·2-min read

Hong Kong and mainland stocks gained as China and the US agreed to promote trade and investment cooperation after a third round of discussions in two weeks. The US also dropped its Trump-era ban on TikTok and WeChat apps.

The Hang Seng Index added 0.3 per cent to 28,828.94 at the local noon trading break. The index had declined 2.5 per cent over the preceding six days, the longest since late September 2019. The Shanghai Composite added 0.8 per cent, while the CSI 300 of the biggest stocks in Shanghai and Shenzhen rose 1.1 per cent, both on track for their second day of gains.

BYD soared 7.4 per cent to HK$214, the highest in more than three months after the Warren Buffett-backed carmaker said this week production of new energy vehicles rose 174 per cent in May from a year earlier. Solar panel glass manufacturer Xinyi Solar jumped 4.3 per cent to HK$14.06, the most in three weeks. Both became Hang Seng Index members this week. CK Asset gained 2.2 per cent to HK$52.90.

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Chinese commerce minister Wang Wentao and his US counterpart Gina Raimondo “had a candid and pragmatic exchange of views on relevant issues and mutual concerns in the China-US business field,” the ministry said a statement in Beijing on Thursday.

“The talks between the commerce ministers is a positive development for the markets, and has given market sentiment a boost,” said Stanley Chan, director of research at Emperor Securities. “There is room for negotiations.”

Meanwhile, President Joe Biden on Wednesday had also revoked executive orders seeking to ban Chinese social-media apps TikTok and WeChat by ex-president Donald Trump, while issuing a new order to review security concerns posed by the apps.

On the mainland, liquor distiller Kweichow Moutai rose 1.8 per cent to 2,240 yuan, while China Three Gorges Renewables Group rose 44.2 per cent from its listing price of 2.65 yuan as the power generation company made its trading bow in Shanghai.

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