Global stock markets were hit hard in early April, when US President Donald Trump announced sweeping tariffs that set off a series of rapidly escalating levies from the world’s two largest economies. But a 90-day pause on most of the tariffs helped dispel investors’ worst fears — at least for now — and focus has shifted to the chance of a broader deal. Representatives from the two countries meet for talks in London on Monday.
Chinese drugmakers’ stocks rose, as analysts touted the performance of some of the companies that participated in the annual meeting of the American Society of Clinical Oncology. Shares of Chinese biotech companies have jumped this year as investors grow excited about innovation, leading to talk of a “DeepSeek moment” for the sector.
The rally “could be reflective of more than just trade-talk optimism — perhaps the renewed confidence in China’s tech story,” with recent earnings and artificial intelligence breakthroughs, said Charu Chanana, chief investment strategist at Saxo Markets. “Still, with geopolitical tensions lingering, it’s a cautious rebound rather than a full-blown risk-on shift.”
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Despite recent volatility, the HSCEI is among the world’s best performing stock indexes so far this year. The HSCEI and Hong Kong’s broader Hang Seng Index are both up more than 20% this year.
Global investors are looking to increase their exposure to Chinese stocks from the current low level, wrote Morgan Stanley analyst Laura Wang in a June 8 report, following a recent round of meetings with fund managers. Investors are particularly interested in so-called new consumption stocks, as well as those linked to AI or technology more broadly, she wrote.
