FX.co ★ China Stocks Rebound on Oil Retreat, Tech Gains

The Shanghai Composite Index rose 0.5% to around 3,900 and the Shenzhen Component climbed 0.8% to 13,500 on Friday, rebounding from the previous session as easing oil prices lifted risk appetite and investors focused on upcoming high-level US–China talks. Both gauges were also on track for modest weekly gains as worries about potential Middle East supply disruptions faded, with Saudi Arabia working to restore flows through its East–West pipeline and optimism building around renewed diplomatic efforts to end the conflict.

At the same time, intensifying competition in artificial intelligence and access to advanced US chips are widely expected to dominate the forthcoming meeting between Presidents Donald Trump and Xi Jinping. Markets are also watching for progress on tariffs, China’s rare-earth export restrictions, the yuan, and a possible extension of the trade truce set to expire in November. Technology shares led the market higher, with CXMT, Foxconn, Zhongji Innolight and Cambricon advancing between 1% and 3%, while most banking stocks declined.