Global Market: China stocks climb on AI boost, US-China talks in focus

Mainland Chinese and Hong Kong stocks rose on Tuesday, led by gains in artificial intelligence shares, after the United States and China agreed to hold further talks on AI safety, while investors awaited a meeting of top Chinese leaders later this week, Reuters reported.

At midday, the Shanghai Composite was up 0.2%, while the blue-chip CSI300 index gained 0.5%. The Shenzhen index advanced 0.5%, the ChiNext Composite rose 0.9% and Shanghai's tech-focused STAR50 index climbed 1.3%.

AI stocks were among the biggest gainers in morning trading, with the sector's sub-index rising 2.3%.

US-China agree further AI safety talks

Senior US and Chinese officials will meet again in about two months in Shenzhen to discuss the risks posed by artificial intelligence and establish communication protocols for potential AI safety incidents, US Treasury Secretary Scott Bessent said on Monday, Reuters reported.

Bessent also struck a positive tone on the US-China trade relationship ahead of Chinese President Xi Jinping's state visit to the United States from September 23 to 25 at the invitation of US President Donald Trump.

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Reuters reported that investors are nevertheless taking a measured view of the visit, with attention focused on its symbolism and the potential for both sides to establish frameworks for managing their broader strategic relationship.

Hong Kong stocks gain

In Hong Kong, the Hang Seng Index rose 0.4%, while the Hang Seng Tech Index gained 1%.

Alibaba shares in Hong Kong climbed to a one-month high at one point after Chief Executive Eddie Wu said on Tuesday that the company aims to increase its global cloud data-centre capacity to more than 20 gigawatts by 2032.

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The gains in technology stocks provided support to the broader Hong Kong market as investors assessed developments in the US-China relationship and looked ahead to upcoming policy signals from China's leadership.

Reuters reported that market participants are also watching for any fresh announcements that could provide greater clarity on the economic and strategic relationship between the world's two largest economies.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)