US President Donald Trump said on Sunday that China had agreed to "reduce and remove" tariffs on US cars below the 40 per cent level that Beijing is currently charging on American-made vehicles.
A day after he and Chinese President Xi Jinping called a 90-day cease-fire in their trade war to allow time for negotiations, Trump said on Twitter: "China has agreed to reduce and remove tariffs on cars coming into China from the US.
Currently the tariff is 40 per cent".
Telecom, tech, auto companies and shipping firms are among the biggest gainers in China and Hong Kong after the trade truce between Washington and Beijing.
Telecommunications:ZTE Corp. surges as much as 11 percent in Hong Kong to the highest intraday price since July 18. Any easing of tensions between the U.S. and China comes as a big relief to ZTE's investors after the U.S. government briefly banned the company's purchase of parts from American suppliers earlier this year.
ZTE Corp. surges as much as 11 percent in Hong Kong to the highest intraday price since July 18. Any easing of tensions between the U.S. and China comes as a big relief to ZTE's investors after the U.S. government briefly banned the company's purchase of parts from American suppliers earlier this year.
Hangzhou Hikvision Digital Technology Co. gains as much as 10 percent in Shenzhen, while an information technology gauge rises as much as 5.3 percent to lead gains on MSCI China. Investors were concerned that surveillance stocks like Hikvision could be among the first hit by an escalation of the trade spat. Zhejiang Dahua Technology Co., whose first-half results missed estimates due to impact from the trade tensions, jumps as much as 8.4 percent, while Shenzhen Infinova Ltd. rises as much as 4.3 percent.
Nexteer Automotive Group Ltd. climbs as much as 7.8 percent in Hong Kong, while Guangzhou Automobile Group Co. rises as much as 7.9 percent.
A tweet from President Donald Trump spurs rally for auto dealers. China Grand Automotive Services Co. surges as much as 10 percent, while China Yongda Automobiles Services Holdings Ltd. soars 10 percent and Pang Da Automobile Trade Co. gains 9.4 per cent. China has agreed to "reduce and remove" tariffs on American-made cars, a claim that wasn't immediately confirmed by Beijing.
If China cancels tariffs on high-end imported cars, that should benefit dealerships as the prices will be lower, said Angus Chan, Shanghai-based analyst with Bocom International Holdings Co. Domestic brands should be unaffected as their cars don't fall into the same segment and there's a huge price difference, he said.
Shipping and transport:
Pacific Basin Shipping Ltd. jumps as much as 10 percent, while Cosco Shipping Holdings Co. climbs 5.7 percent. Shippers stand to benefit as China's promise to import agricultural goods should drive shipping demand. Airlines advance, with Air China Ltd., China Southern Airlines Co. and China Eastern Airlines Co. gaining at least 1.4 percent in Hong Kong.
WH Group Ltd. soars as much as 15 per cent, among the best performers on the Hang Seng Index. The world's largest pork company generates nearly 60% of its revenue and profits in the U.S. It slumped as much as 46 percent from its February high amid the trade tensions.
Skyworth Digital Holdings Ltd., whose overseas television sales dropped on the trade war, gains as much as 5.7 percent in Hong Kong. Qingdao Haier Co., which makes air conditioners and refrigerators that are part of the U.S. tariff list, gains as much as 8.4 percent in Shanghai. Li & Fung Ltd., which deals in products including sporting goods that are also targeted in the U.S. tariff list, adds as much as 6.3 percent in Hong Kong.