Chinese stocks eked out gains on the first trading day of the week as Chinese officials are hopeful and at the same time bracing for the impact of the re-inauguration of Donald Trump as president of the United States on Monday.
The Shanghai Composite Index, the main gauge of Chinese stocks, gained 0.079% or by 2.56 points to 3,244.38. The Shenzhen Component Index rose 0.94% or by 95.07 points to 10,256.40.
Chinese Vice President Han Zheng said he is optimistic US companies will "take root" in China to help normalize relations between the world's top two countries, Xinhua News Agency reported Monday.
During his election campaign, Trump promised up to 60% tariffs on Chinese goods. When he first became president, Trump slapped tariffs on more than $300 billion of Chinese imports.
For his second term, Trump invited President Xi Jinping to his inauguration in what Reuters calls a "seemingly conciliatory move." Xi sent Han to represent him, which Reuters sees as an improvement to the two US inaugurations where China only sent ambassadors, the report said.
Meanwhile, the People's Bank of China retained its one-year loan prime rate at 3.1% and the five-year LPR at 3.6%.
Elsewhere, the International Monetary Fund said China's 5% economic growth was a "positive surprise," given that the fund forecast 4.8% growth for the country, according to a statement by IMF Economic Counselor and Director for Research Pierre-Oliver Gourinchas.
On the corporate front, TikTok went back online after Trump said he would extend a deadline for ByteDance to divest its US operations, Bloomberg News reported Sunday.
Trump plans to establish a joint venture in which US owners would take 50%, the report said.
Shares in CATL (SHE:300750) closed 6% higher after the company filed charges against battery maker CALB (HKG:3931) for alleged patent infringement on battery modules.
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