Chinese technology stocks rallied in early Monday trading, lifted by investor optimism ahead of high-level U.S.–China trade negotiations in London. The talks, expected to address tariffs and export restrictions, could positively impact growth in the tech and consumer sectors.
U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are set to meet with Chinese Vice Premier He Lifeng to discuss rolling back tariffs, easing export curbs on semiconductor tools and critical minerals, and tackling deeper economic concerns.
Hong Kong-listed giants Alibaba (HK:9988) and JD.com (HK:9618) led the gains, rising 3% and 4.8%, respectively, as traders anticipated possible relief from U.S. tariffs and a resumption of rare earth exports. The surge follows a positive call between Presidents Xi Jinping and Donald Trump, which signaled a thaw in relations.
Semiconductor Manufacturing International Corp (SMIC) (HK:0981) climbed 4.6%, fueled by expectations that Washington may ease restrictions on chipmaking equipment exports—a central issue in the upcoming talks. Other tech players, including NetEase Inc (HK:9999) and Baidu Inc (HK:9888), also posted gains of more than 3%.
The Hang Seng TECH Index surged over 3%, while the broader Hang Seng Index rose 1.7%, reflecting market confidence in progress from the diplomatic dialogue. Analysts note that any breakthroughs could boost investor sentiment across Asia’s technology and consumer markets, which have faced headwinds from geopolitical tensions and regulatory crackdowns.
The outcome of the London meeting could set the tone for future cooperation on trade and innovation, with potential ripple effects across global supply chains and capital markets.