GreenergyDaily

Aug. 6, 2025

The Shanghai benchmark advanced to its highest close in more than 3-1/2 years on Wednesday, underpinned by market hopes for an extended trade truce between the United States and China to reach a final deal.

At the close, the Shanghai Composite index was up 0.45% at 3,633.99 points, marking the third straight session of gains, and booking the highest close since December 31, 2021. Meanwhile, the blue-chip CSI300 index was up 0.24%.

Defence and coal shares led gains, rising 2.65% and 2.21%, respectively.

U.S. President Donald Trump said on Tuesday the U.S. was close to a trade deal with China. "We're getting very close to a deal. We're getting along with China very well," he said.

Winnie Chwang, portfolio manager at Matthews Asia, said investors would like to see more clarity from Sino-U.S. trade negotiations.

"I do sense that, while there's been a bit more interest in revisiting the Chinese markets, there are also still investors that sit on the fence, primarily given the still uncertain nature of trade, and it's very difficult to make any sort of confident predictions," Chwang said.