Key Points
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Tencent led Chinese stocks higher on Wednesday, rising 4% by 3:48 p.m. EDT.
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U.S. Treasury Secretary Scott Bessent announced that trade talks with China will resume next week, with a likely tariff extension beyond the August 12 deadline.
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An extension could alleviate risks for Chinese stocks during ongoing trade negotiations.
Tencent Holdings (OTC: TCEHY) experienced a significant boost on Wednesday, driven by optimism surrounding U.S.-China trade talks. The rise came after Treasury Secretary Scott Bessent stated that he would meet with Chinese counterparts in Stockholm on Monday and Tuesday to discuss a potential extension of existing tariffs, which were previously agreed to be lowered in May.
The ongoing trade negotiations have been crucial as they connect to a broader economic context; Bessent’s comments revived hope for a resolution, mitigating skepticism stemming from previous hiccups in discussions. Tencent’s strong performance in light of this optimism positions it well for a recovery in the Chinese economy, particularly when it reports its Q2 earnings on August 13.
