Hong Kong stocks advanced on Monday as investors cheered signs of easing tensions between China and the United States after the two nations reached a preliminary framework deal in Kuala Lumpur, raising hopes for further stabilisation in the world’s most important bilateral relationship.

The Hang Seng Index climbed 1.1%, while the Hang Seng Tech Index advanced 1.8%.

In terms of star stocks, Baidu rose 6%; NIO rose 5%; SMIC rose 4%; Alibaba and Tencent rose 3%; JD.com, XPeng, BYD, Kuaishou, and CATL rose 2%; Meituan, Mixue Group, Pop Mart, and Bilibili rose 1%; while Li Auto fell 2%; NetEase and Xiaomi fell 0.3%.

Top trade negotiators from China and the US agreed on Sunday to an initial deal following two days of talks led by Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent. The consensus, which will be sent for domestic approval by both sides, came ahead of the November 10 expiration of a temporary tariff truce.

The development also comes just days before the anticipated meeting between Chinese President Xi Jinping and US President Donald Trump, scheduled for this Thursday at the Asia Pacific Economic Cooperation meeting – their first face-to-face since Trump’s return to the White House in January.