May 13, Tuesday

High-Level Voices: 
Xinhua published a commentary titled Sino-US Economic and Trade Talks Ease Pressure and Boost Confidence for the Global Economy, stating that rational expectations should be held for these talks and the trajectory of Sino-US economic and trade relations in the near future.

Overall Sentiment: 
The China-US trade talks in Geneva significantly exceeded expectations.
Both sides reduced reciprocal tariffs by over 100%, leaving a base tariff of 10% on both sides, along with the 20% tariffs imposed by Trump on China in 2018 and the 20% punitive fentanyl tariffs added earlier this year. Hong Kong stocks were boosted by the news, rising by 1%. The capital market's reaction was less enthusiastic than expected, largely because investors are gradually realizing that Trump is not making one-off deals. He employs a series of calculated moves, and the aforementioned trade agreement is only valid for 90 days, with further outcomes depending on subsequent negotiations.