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| HSI1 | 25,889.48 | -400.84 | 490.37B |
| HSCEI1 | 9,222.54 | -135.78 | 194.82B |
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2025-10-13 14:59:29 Prior to the US-China talks in Spain, the current round of US-China trade tensions already escalated, Haitong International's research report noted. The US BIS added 23 Chinese entities to its list, while China announced an anti-dumping investigation into US-made analog chips, after which the US is pushing to beef up sanctions on Russian energy. The subsequent US-China talks in Spain showed overall progress, with ongoing negotiations regarding TikTok. Despite positive notes from both sides, no substantial breakthroughs were achieved on core issues, with key progress likely pending a meeting between the two countries' leaders, the broker remarked. Therefore, the next phase of market catalysts was expected to rely more on domestic policy developments. Haitong International's expectations following the escalation of trade tensions aligned with those during the reciprocal tariffs in early April, suggesting limited systemic risk and continued negotiation space. The escalation reflected Trump's dissatisfaction with the slow progress since the Spain talks and China's ongoing countermeasures, particularly the strong reaction to the rare earth technology export controls set to be implemented on December 1. This measure may be a strategic move by China in response to US-Brazil rare earth cooperation. Prior to this, both countries had communicated on key issues like TikTok, purchasing US soybeans, and rare earth exports. Thus, the broker assessed that the current trade escalation is more likely Trump's negotiation pressure ahead of the leaders' meeting. Once this round of tensions de-fuses, maintaining current tariff levels between the US and China remains highly probable. H- and A-share technology sectors experienced considerable fluctuations last week after substantial gains earlier. SMIC (00981.HK) saw a sharp correction over two consecutive days. Haitong International assumed that the technology sector will enter a phase of differentiated fluctuations in the short term. In a nutshell, if the Chinese stock market opens sharply lower and continues lower on Monday (13th), it could trigger a short-term uptick. That said, due to the uncertainty surrounding the meeting between the Chinese and US presidents, the market is likely to remain shaky in October. The market was expected to regain upward momentum following clearer policy direction from the Fourth Plenum in late October 2025, coupled with the gradual easing of U.S.-China trade tensions. ~ AASTOCKS Financial News Website: www.aastocks.com | |