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Chinese equities could get a fresh boost after this week's high-stakes meeting between U.S. President Donald Trump and Chinese President Xi Jinping, with investors saying the summit could ease trade tensions and revive momentum, especially in the country's lagging technology shares.
Goldman Sachs analysts said discussions were expected to focus narrowly on trade and export controls, including tariffs, semiconductor restrictions and rare earth exports. The bank said it expected China to agree to buy more U.S. agriculture products, energy and aircraft in exchange for avoiding further tariff escalation.
While Goldman does not expect a sweeping "grand bargain," it said the meeting could still "act as a tactical catalyst for strength in the Chinese yuan and in Chinese equities."
Dong Chen, chief investment officer at Bank J Safra Sarasin, viewed the summit as a near-term catalyst for Chinese equities, especially after months of underperformance compared with U.S. technology peers riding the artificial intelligence boom.
