The Shanghai Composite rose 0.8% to around 3,980 while the Shenzhen Component gained 1.1% to 13,440 on Monday, with the former hitting fresh ten-year highs amid hopes for a trade breakthrough in the Trump-Xi meeting in South Korea this week. US and Chinese negotiators said they had reached consensus on key issues including export controls, fentanyl, and shipping levies after productive weekend talks in Malaysia. Sentiment was further boosted by data showing China’s industrial profits surged 21.6% year-on-year in September, the fastest pace since November 2023. Technology and AI-related stocks led the rally, with Eoptolink Technology, Zhongji Innolight, Victory Giant, Foxconn Industrial, and ZTE Corp advancing between 2.5% and 9.4%. High-growth clean energy and materials firms also gained, including Sungrow Power (1.1%), China Northern Rare Earth (2.5%), and Zijin Mining (3.2%).
