Hong Kong stocks rise ahead of US-China trade talks focused on de-escalation

Hong Kong stocks rose for a fifth straight trading day on anticipation of US-China trade talks later this week, coupled with continued capital inflows into the city, which have pushed the local currency to the strong end of its trading band.

The Hang Seng Index rose 1.8 per cent to 23,075.77 at 10am on Wednesday. The Hang Seng Tech Index was up by 2.3 per cent. On the mainland, the CSI 300 Index rose 0.6 per cent and the Shanghai Composite Index was 0.6 per cent higher.

Insurance company AIA Group rose 8 per cent, short-video platform Kuaishou Technology rose more than 3 per cent and Tencent Holdings was up 2.7 per cent. Macau casino operator Sands China lost 1 per cent and sportswear maker Anta Sports was 0.5 per cent lower.

Early Wednesday, the US and China said tariff-focused trade talks would begin this week in Switzerland. Chinese Vice-Premier He Lifeng was expected to meet with US Treasury Secretary Scott Bessent from May 9 to 12.

In an interview with Fox News, Bessent said the talks would focus on de-escalation rather than a big trade deal.

“We’ve got to de-escalate before we move forward,” he said.