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China markets up on positive trade news

Investing.com – Stock markets in China and Hong Kong were trading higher Monday morning following news that China will reduce tariffs on tech and some agricultural products on Jan. 1 and that the state-backed semiconductor fund will sell some of its holdings in some key tech companies.

China’s Shanghai Composite rose 0.83% by 09:07 PM ET (02:07 GMT). The Shenzhen Component was down 0.41%.

Hong Kong’s Hang Seng Index rose 0.31%.

China´s finance ministry announced early Monday morning plans to cut tariffs on more than 850 products such as pork and other agricultural commodities.

Beijing’s announcement follows a Friday tweet by U.S. President Donald Trump, in which he remarked on the good momentum of the Sino-U.S. trade talks, saying he had “a very good talk” with Chinese President Xi Jinping and noting that “formal signing being arranged”.

On Monday, the Tariff Commission of China’s State Council said reducing tariffs would be “conducive to reducing import costs, promoting the orderly and free flow of international and domestic factors, and promoting the establishment of a new system of a higher level, open economy.”

Putting a drag on some Chinese tech stocks, however, the National Integrated Circuitry Investment Fund, known as the “Big Fund”, said it will partially divest from its investments in Shenzhen Goodix Technology, Hunan Goke Microelectronics and Gigadevice Semiconductor after big gains this year.

Japan’s Nikkei 225 was also up, trading 0.21% higher after losing 0.20% on Friday, following a climb in the yen.

Bucking the upward trend, South Korea’s KOSPI was down 0.23% and Australia’s ASX 200 slipped 0.28%.

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