Surging Stocks: China-Hong Kong Markets Lifted by Positive U.S.-China Relations

China and Hong Kong stocks rose following U.S. President Trump's optimistic comments about trade talks with China's Xi Jinping. High-dividend shares boosted by potential regulatory changes, and fresh capital from Beijing's plans for long-term funds added to market strength. Key indices posted significant gains.

Stock markets in China and Hong Kong saw a rise on Friday, bolstered by remarks from U.S. President Donald Trump about his recent discussion with China's President Xi Jinping, described as 'friendly,' and a potential trade deal with China.

The markets gained further support from a surge in high-dividend shares, anticipated beneficiaries of a prospective move by Beijing to introduce long-term funds that could channel approximately 1 trillion yuan ($140 billion) annually. The blue-chip CSI300 Index climbed 0.8%, the Shanghai Composite Index increased by 0.7%, and Hong Kong's Hang Seng Index experienced a 1.9% rise, reflecting its sensitivity to geopolitical developments.

Positive sentiment was also influenced by Chinese regulators advising insurers and mutual funds to acquire more stocks, which could inject substantial capital into the market. Meanwhile, technology-related indices also gained, with China's STAR 100 Index soaring by over 2% as the first batch of ETFs tracking the STAR Market Composite Index received approval.