Chinese Shipping Stocks Climb on US-China Trade Truce Progress
Chinese shipping stocks advanced on Monday after Washington and Beijing reached a preliminary trade framework designed to prevent new tariffs and ease tensions ahead of a key summit between U.S. President Donald Trump and Chinese President Xi Jinping later this week.
The framework, discussed during meetings in Kuala Lumpur, includes an agreement for China to delay export controls on rare-earth minerals and magnets, one of the main sticking points in recent trade disputes. In return, Washington signaled it would suspend plans for a 100% tariff on Chinese imports that was set to take effect on November 1.
The deal also features steps toward renewed Chinese purchases of U.S. soybeans and outlines progress on disputes related to shipping levies and port fees, signaling a potential thaw in trade relations between the two largest economies.
Shipping Stocks Rally Across Mainland and Hong Kong Markets
In the wake of the announcement, Shanghai-listed COSCO Shipping Holdings (SS:601919)—China’s largest container carrier—rose nearly 3% on Monday.
China Merchants Energy Shipping (SS:601872) gained over 2%, while Orient Overseas International (HK:0316), a COSCO subsidiary operating major trans-Pacific routes, jumped 3%.
SITC International (HK:1308), another leading regional container shipper, advanced as much as 4% during the session.
The broad rally across China’s shipping sector reflected renewed optimism that trade normalization could boost export volumes and global freight demand heading into year-end.
