US-listed shares of Chinese companies jumped during Monday’s pre-market trading session after both countries reached a framework for a trade deal over the weekend.
The agreement surges ahead of the upcoming meeting between Xi Jinping and Donald Trump on Thursday, in South Korea — marking the first time the leaders meet since 2019.
China’s CSI 300 Index gained 1.2% on Monday, while Hong Kong’s Hang Seng Index added 1.1%.
As of press time, shares of the Chinese EV maker Nio are trading 2.5% higher at $7.07, up from last Friday’s close of $6.90.
XPeng‘s stock is rising by over 2% to $22.06 from its previous close of $21.62.
In contrast, Li Auto is trading nearly 1% lower at $21.71, extending Friday’s losses after a Li Mega multi-purpose van (MPV) caught fire on the road late last week.
Its Hong Kong-listed shares also fell 2.99% to HK$84.30 on Friday, reaching their lowest level in the last six months.
Other Chinese companies listed in the US, including the e-commerce group Alibaba and the tech giant Baidu, have seen gains in Monday’s pre-market session.
As of press time, Alibaba is up 2.79% at $179, while Baidu has surged over 5% to $129.
Chinese companies’ stock performance has been impacted by the tariff negotiations over the past weeks.
Two weeks ago, Trump threatened “massive tariff” increases on Chinese goods, leading to a selloff across several markets.
The measure was a reaction to Beijing’s announcement of export controls on rare earth minerals. However, Xi has shown no sign of yielding to Trump’s threat to impose 100% additional tariffs.
By then, Trump accused China of “becoming very hostile” and trying to hold the world “captive,” as it controls more than half of global production and the majority of the refineries of rare earths.
However, the US President soon struck a conciliary note, writing on the same social platform, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment.”
“He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” he added.
A few days before the two Presidents meet, and according to the US Treasury Secretary Scott Bessent on Sunday, a framework for a trade deal was reached by the two administrations.
The Secretary announced that China will “delay” the export controls on minerals used in fighter jets, smartphones and EVs for a year.
Bessent also stated that the agreement would remove Trump’s threat of 100% tariffs on Chinese imports from November 1, and include “a final deal” on the sale of TikTok in the US.
China’s International Trade Representative Li Chenggang confirmed that both sides have reached a “preliminary consensus,” now awaiting respective internal approval processes.
Li stated that they have “experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns” in the US-China negotiations.
China-EU trade talks are also advancing, after being reestablished in April as Trump’s tariffs were announced.
Several Chinese automakers are now actively involved through the China Chamber of Commerce to the EU’s Automotive Working Group (CCCEUAWG).
Last year, the EU imposed tariffs on Chinese electric vehicle imports after determining the industry received significant government subsidies, which led to unfair trade in the region.
