Trump-Xi Summit helps stabilise expectations

Highlights: The Trump-Xi summit in Beijing on 14-15 May 2026, concluded as an event with a mix of symbolism and selective progress. The overarching message from both sides was one of managed rivalry: “constructive strategic stability,” as President Xi framed it, rather than any structural breakthrough. Even though a number of headline issues were left unresolved, the summit appeared to reinforce market expectations that both countries remain focused on preventing renewed escalation in trade and technology competitions, which will help limit the downside sentiment. President Xi has been invited to visit the US on 24 September, along with two other key international summits (APEC in November and G-20 in December), setting the stage for more positive engagements between the US and China throughout the year.

• Forward-looking market implications: The summit delivers tactical relief but no structural breakthroughs on several important issues. Having said that, the Trade and Investment Council is now established, President Xi’s visit to the US confirmed, and both sides explicitly signalled the willingness to extend the trade truce
• For equity investors, we think the appropriate posture is constructive but selective. Sector-wise, the technology and AI complex remains the most asymmetric opportunity, and we want to continue highlighting the opportunities come alongside China’s industrial resilience and on-going reflation in selective industrial sectors. We also maintain a positive CNY bias, in particular if the trade truce is formally extended, this could provide a backdrop for stable outlook of RMB. The confirmed autumn state visit by President Xi to Washington is likely to serve as an important expectations anchor between now and September. For the market, this dynamic could translate into a relatively supportive backdrop for Chinese equities through Q3 2026