China stocks trade close to 3-year high on US plan to cut fentanyl-linked tariffs

The CSI 300 Index climbed 0.3 per cent to 4,708.09 as of 10.11am local time. The Shanghai Composite Index added 0.1 per cent.

Hong Kong’s market is shut for a public holiday.

Technology stocks paced the gains, with a sub-gauge under the CSI 300 rising 1.7 per cent after China highlighted tech self-sufficiency as the key task in a detailed five-year plan outlining the nation’s development, released on Tuesday evening.

The US was expected to halve the 20 per cent tariff on Chinese goods in exchange for China limiting the export of chemicals used to make fentanyl, Trump said a day before his meeting with his Chinese counterpart Xi Jinping on Thursday in South Korea.

The reduction, if implemented, would lower tariffs on Chinese imports to about 45 per cent, making the goods more competitive with those from other US trading partners that clinched trade deals months ago.