Chinese stocks in Hong Kong head for a bull market before US talks

Chinese shares trading in Hong Kong were on course to enter a bull market by Monday’s close, as planned talks between the US and China fuel a wider sense of relief among investors.

The Hang Seng China Enterprises Index rose as much as 1.7%, putting it on track to close more than 20% higher than its low on April 7. Technology and e-commerce shares led gains, helping the gauge outperform a 0.9% bounce in the MSCI Asia Pacific Index.

Global stock markets were roiled 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.

“Markets are hoping for positive headlines to come from the US-China trade talks later today,” said Marvin Chen, a strategist at Bloomberg Intelligence. “Onshore A shares have been less volatile amid the trade war swings over the past two months. Foreign sentiment on China is better reflected in the Hong Kong market.”

Despite recent volatility, the HSCEI is among the world’s best performing stock indexes so far this year, buoyed by expectations for further policy stimulus and artificial intelligence-driven optimism from DeepSeek’s breakthrough. The HSCEI and Hong Kong’s broader Hang Seng Index are both up almost 20% this year.