On May 12, after the close of the A-shares market, the joint statement of the US-China economic and trade talks was released. Following the announcement, the FTSE China A50 Index Futures surged sharply, and the Hong Kong stock market experienced significant gains.
The FTSE China A50 Index Futures surged straight up, and as of the time of writing, the increase was 1.43%. The Hong Kong stock market is soaring! As of the time of writing, the Hang Seng TECH Index rose nearly 6%, and the Hang Seng Index rose over 3%.
Hong Kong's Autos stocks surged, with Xiaopeng Motors rising over 11%, NIO and Li Auto rising over 8%, and BYD shares rising over 7%.
At the same time, US stock index futures also surged, with NASDAQ 100 Index Futures up 3.52%, Dow futures up 2.11%, and S&P 500 Index Futures up nearly 3%.
On the news front, a joint statement was issued regarding the China-US economic and trade talks, in which both sides committed to taking the following measures by May 14, 2025:
The USA will (1) amend the tariffs imposed on Chinese commodities (including those from the Hong Kong Special Administrative Region and the Macao Special Administrative Region) specified in Administrative Order No. 14257 dated April 2, 2025, where the 24% tariff will be suspended for the initial 90 days while retaining the additional 10% tariff on these commodities as stipulated by the order; (2) cancel the additional tariffs on these commodities imposed under Administrative Orders No. 14259 dated April 8, 2025, and No. 14266 dated April 9, 2025.
China will (1) correspondingly amend the tariffs on USA commodities as specified in Announcement No. 4 by the Tax Commission in 2025, where the 24% tariff will be suspended for the initial 90 days while retaining the additional 10% tariff on these commodities and canceling the additional tariffs on these commodities imposed under Announcement No. 5 and No. 6 by the Tax Commission; (2) take necessary measures to suspend or cancel non-tariff countermeasures against the USA starting from April 2, 2025.
Editor/Somer
