Chinese equities climbed on June 11 following promising signals from U.S.-China trade negotiations in London. The CSI 300 Index, tracking major Shanghai and Shenzhen listings, gained 1% – its strongest performance in four weeks. Hong Kong’s Hang Seng China Enterprises Index rose 0.9%, reaching a March 2025 high.
After two days of talks, both nations agreed to a preliminary framework addressing key trade friction points. U.S. Commerce Secretary Howard Lutnick confirmed the deal includes provisions on China’s export restrictions for rare earth minerals and industrial magnets, critical for electronics and defense manufacturing. The accord aims to reactivate the 2023 Geneva trade truce that had stalled amid tariff disputes.
While Chinese markets rallied, global reaction remained muted. S&P 500 futures showed minimal movement, and the offshore yuan traded steadily. Pepperstone research head Chris Weston noted the tempered response suggests investors "priced in" expected outcomes ahead of the talks. He emphasized implementation will be critical: "The devil is in the details – particularly how rare earth exports flow and U.S. chip access to China unfolds."
The London meetings marked the first substantive progress since trade tensions reignited in early 2025. Both sides avoided confrontational rhetoric, with Chinese state media highlighting "mutual respect" in discussions. Analysts view the rare earth agreement as strategically significant, given China controls 70% of global production. Further technical talks are scheduled for July in Geneva.