An apparent easing of U.S.-China trade tensions was breathing life into equities from the Asian nation that are listed in our country. One of the beneficiaries was tech conglomerate Tencent Holdings (TCEHY +3.07%), whose American depositary receipts (ADRs) closed Monday 3% higher in value. That was more than double the percentage rate of the S&P 500 (SNPINDEX: ^GSPC), which inched up by 1.2% that trading session.
The talks before the talks
Over the weekend, U.S. and Chinese government negotiators indicated progress in foundational talks aimed at agreeing to new terms on trade (and likely reducing major tariffs). This is in advance of a meeting President Trump -- on a state visit to Asia -- will hold with his Chinese counterpart Xi Jinping this week.
Image source: Getty Images.
Both sides opined that the initial negotiations were productive. The Wall Street Journal quoted U.S. Treasury Secretary Scott Bessent as saying that the Americans "have a very successful framework for the leaders to discuss on Thursday."
The Chinese sentiment is similar, with the Journal quoting China's Vice Commerce Minister Li Chenggang as saying that a preliminary consensus had been reached on key differences between the countries.
OTC: TCEHY
Key Data Points
Knock-on effects
A reduction in trade tensions between China and the U.S. would do plenty of good to the economies of the two countries. That goes double for businesses active in both, and Tencent -- with its considerable Tencent America unit -- absolutely ticks that box.
