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China stocks rise as Biden-Xi hold summit

China stocks rise

The Hang Seng index gained 1.1%, to 25,658.04 points and the Hong Kong China Enterprises Index gained 1.1%, to 9,187.01

China stocks gained on Tuesday as investors embraced positive signs in talks between U.S. President Joe Biden and Chinese leader Xi Jinping. The CSI300 index added 0.5%, to 4,908.10 points at the end of the morning session, while the Shanghai Composite Index advanced 0.3%, to 3,543.46 points.

The Hang Seng index gained 1.1%, to 25,658.04 points. The Hong Kong China Enterprises Index gained 1.1%, to 9,187.01.

U.S. President Joe Biden and Chinese leader Xi Jinping stressed their responsibility to the rest of the world to avoid conflict as the heads of the two top global economies opened their closely watched talks on Monday.

Investors expected the summit to help stabilize China-U.S. ties by opening negotiations over the conflicting areas.

Consumer staples added 1.9%, with liquor makers soaring more than 4%. Healthcare shares rose 3%.

Several Chinese food companies have increased the prices of their products since last month due to rising raw material and transportation costs.

Haitong Securities said PPI may have already peaked and could fall in the fourth quarter, which would reduce the cost pressure for companies and bring more opportunities in the consumer sector.

On the second trading day of the new Beijing Stock Exchange, only 5 shares of the first batch of 81 companies went up.

Gaming stocks listed in Hong Kong soared 6.4% as Macau expands COVID-19 booster shot eligibility, with Galaxy Entertainment Group up 7.1% to become the biggest percentage gainer on the Hang Seng Index.

Hang Seng Tech Index, the consumer staples sub-index and the healthcare sub-index gained between 1.2% and 2.7%.

Mainland property developers listed in Hong Kong added 2.1%. However, shares of Kaisa Prosperity, a property services unit of embattled developer Kaisa Group, tumbled 13.5% after trading resumed a day after the company said its parent’s liquidity issues would not impact operations.

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