By Sherry Qin
Chinese tech stocks gained Monday ahead of a meeting between Chinese and U.S. officials that is spurring hopes for a trade deal.
Shares of technology companies listed in Hong Kong were broadly higher, led by major players like chip maker SMIC, which was up 3.9%. E-commerce giants Meituan and Alibaba Group rose 5.15% and 1.9%, respectively.
The Nasdaq-like Hang Seng Tech Index rose as much as 3.2% early in the session before paring gains to 2.3% after Chinese trade data missed expectations.
The U.S. and China will begin their second round of trade talks on Monday in London, President Trump said Friday. That followed a call between Trump and Chinese leader Xi Jinping last week agreeing to resume discussions on tariffs after the two sides struck a temporary truce in mid-May.
"The meeting should go very well," Trump wrote on Truth Social on Saturday. The U.S. president told reporters Friday that talks with Beijing were "very far advanced."
The announcement of the meeting, to take place in London, stoked optimism over the weekend, OCBC analysts said in a research note.
The mood is supported by signs that de-escalation may be back on track after the recent resurgence of tensions between the two superpowers, which had both accused each other of undermining the trade truce.
Chinese officials said they have approved some applications for rare-earth exports, a key sticking point in trade talks.
The China tech rally tracks Wall Street's gains last Friday, when the Nasdaq ended 1.2% higher.
Despite the positive news, analysts warned that the outlook remains highly uncertain. Negotiations are highly complex and could take a while to yield results.
Economists at Capital Economics think that a renewed escalation in tit-for-tat tariffs will be avoided, but remain skeptical that "there will be any substantive agreement that alters the intensifying geopolitical rivalry."
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
06-09-25 0135ET
