The shares of Chinese companies have grown following news that US President Donald Trump is considering making a "great deal" with Beijing and that the Chinese government is considering a support program for private businesses. The CSI300 Index, which represents the market price of Chinese blue-chip firms, gained 3.56%, while the SSE Composite Index gained 2.7% during the day.
Earlier, President Donald Trump said that the US is ready to strike a "great deal with China" and end the trade spat between the two economic giants, but noted that China is not ready for it. Washington and Beijing have been engaged in a trade war since April 2018, when the US imposed steep tariffs on Chinese steel and aluminum, which were subsequently followed by tariffs on other goods.
Beijing responded by introducing reciprocal tariffs on US-made goods. Since the start of the trade war, both the CSI300 and SSE Composite Indices have been falling.
Chinese President Xi Jinping made an announcement on November 1 that the government would be taking measures to support private businesses in the country, namely by introducing "substantial" tax cuts and bailout funds.