Chinese equities pushed to a 10-year high this week. A fresh round of trade dialogue between the US and China is being read as groundwork. The advance followed high-level talks in Washington, where both governments reportedly outlined steps toward a trade reset, including temporary tariff pauses and more measured export controls.
Technology names led the move, particularly AI and hardware-focused firms. Gains also extended to Hong Kong-listed peers. At the same time, the yuan rose to its highest level in a month, and bond futures firmed, a combination that points to investor confidence in both policy stability and domestic demand.
Those shifts coincided with stronger-than-expected industrial profit data, with year-on-year growth accelerating at the fastest pace since early 2022. Profitability is returning in key manufacturing sectors, adding a fundamental layer to what had been largely sentiment-driven positioning.
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