China shares climb ahead of Trump-Xi summit; tech stocks inch up

China and Hong Kong stocks experienced a rise on Monday, with technology and property shares leading the increase, as investors anticipated the US and China to maintain a trade truce. Leaders Donald Trump and Xi Jinping were scheduled to meet this week. By midday, the Shanghai Composite index had climbed 0.6% to 3,933.37 points, while the CSI300 index and ChiNext Composite index saw gains of 0.4% and 0.9% respectively.

The STAR50 index, a tech-focused Shanghai index, was up 0.4%. The CSI AI Index added 1.1%. Tech shares experienced gains after US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded talks in New York on Sunday. The US side proposed a new AI safety notification mechanism before the Trump-Xi summit on September 24.

Analysts at Goldman Sachs believed both sides would aim to preserve relative stability in US-China relations, though a comprehensive bilateral agreement seemed unlikely. Among the other gainers were the real estate sector, which surged 4.6%, and the defence sector, which added 1.7%. Healthcare stocks rose over 3% after a Reuters report suggested the US was developing regulations for pharmaceutical companies investing in China, which would likely safeguard their ability to secure licensing deals for Chinese drugs.

In Hong Kong, the Hang Seng Index rose 0.6% to 24,891.58, while the Hang Seng Tech Index remained unchanged. Asian share markets edged higher on Monday, with chipmakers gaining and oil easing following reports that more oil was exiting the Middle East than initially assumed, despite the ongoing conflict in the Gulf.