China and U.S. Set to Discuss Trade in Malaysia as Truce Deadline Approaches
Trade Negotiations: China’s Vice Premier He Lifeng will meet U.S. officials in Kuala Lumpur from October 24 to 27 to discuss trade negotiations aimed at easing tensions between the two countries, following a recent call with U.S. Treasury Secretary Scott Bessent.
Critical Timing: The talks are crucial as a temporary trade truce is set to expire on November 10, and the outcomes may impact an upcoming meeting between Chinese President Xi Jinping and U.S. President Donald Trump at the APEC summit.
Escalating Tensions: Recent weeks have seen increased tensions due to U.S. technology restrictions and proposed tariffs on Chinese vessels, prompting China to implement tighter export controls on rare earths, raising concerns about global supply chains.
Reassurance to Foreign Firms: In response to business concerns, China’s Commerce Ministry held a meeting with foreign companies to clarify that new export measures are not intended to disrupt normal trade activities.
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Analyst Views on GXC

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Tesla's Ambition: Elon Musk predicts that Optimus robots will become the best surgeons on Earth by the end of the decade.
Walmart's Drone Delivery Expansion: Walmart is collaborating with Alphabet to increase aerial drone delivery services to 40 million customers next year, a significant rise from the current two million.
Disney's Theme Park Update: Walt Disney is planning to retheme its Rock ‘n’ Roller Coaster at Hollywood Studios to feature The Muppets, showcasing the company's focus on innovative attractions.
Small-Cap Stocks Performance: There is a notable trend of small-cap stocks outperforming larger ones since mid-November, raising questions about whether this is a temporary phenomenon or the beginning of a longer-term recovery.
- S&P 500 Performance: The S&P 500 has seen an 18% increase this year, reflecting strong performance in the U.S. market.
- FTSE 100 Outperformance: The FTSE 100 has outperformed the S&P 500 with a nearly 21% rise, marking its best year since 2009, despite limited exposure to technology stocks.
- Investor Perspective: Investors may be overly focused on the U.S. market due to the S&P 500's gains, potentially overlooking opportunities abroad.
- Market Analysis: Analysts from RBC Wealth Management highlight the striking outperformance of the FTSE 100 compared to the S&P 500.
Dividend Declaration: SPDR® S&P China ETF (GXC) has declared a semi-annual dividend of $1.3241 per share, payable on December 29 for shareholders of record on December 22.
Yield Information: The 30-Day SEC Yield for GXC is reported at 1.51% as of December 18.
Market Performance: Asian markets are experiencing gains, with the Nikkei rising 2% and surpassing the 50,000 level, as the People's Bank of China (PBoC) maintains key lending rates for the seventh month.
Investment Outlook: GXC is viewed as a solid investment option for broad exposure to the Chinese market, featuring a low-teen price-to-earnings ratio and a strong performance chart.
MetaX IPO Success: Shares of China's MetaX Integrated Circuits surged 700% on their market debut, driven by investor excitement over a government initiative to lessen reliance on U.S. AI chip manufacturers like Nvidia and AMD.
Financial Highlights: The company raised approximately $600 million in its initial public offering, with shares debuting at 700 yuan, significantly above the IPO price of 104.66 yuan, and reaching a peak of 895 yuan during early trading.
Market Impact: The dramatic price increase has created substantial arbitrage opportunities for pre-IPO investors, with analysts suggesting that the stock may have reached its peak for the next five years.
Investor Interest: MetaX's IPO was highly oversubscribed, with retail investors showing strong demand, as evidenced by the share sale being over 4,000 times oversubscribed.

Biren Technology's IPO Plans: Shanghai-based AI chip startup Biren Technology is set to launch an IPO in Hong Kong after receiving approval from China's securities regulator, with plans to issue up to 372.5 million ordinary shares.
Share Conversion and Marketing Timeline: The company will convert approximately 873 million onshore shares into Hong Kong-listed stock, with marketing potentially starting this month and trading expected to begin in January 2026.







