AsianFin -- Chinese equities listed in Hong Kong rallied on Wednesday, with a key index heading for its highest close since November 2021, as easing trade tensions with the U.S. and a surge in major tech stocks lifted sentiment.

The Hang Seng China Enterprises Index climbed as much as 1.8%, surpassing its previous 2024 peak set in March. Tech giants Baidu Inc. and Tencent Holdings Ltd. led the gains, while the broader Hang Seng Index rose 1.6%.

The rebound marks a sharp turnaround from April’s market turbulence triggered by tariff threats from U.S. President Donald Trump. Signs of stabilization have since emerged, with Treasury Secretary Scott Bessent set to meet Chinese officials in Stockholm next week to discuss extending the tariff truce. The talks follow recent U.S. moves to ease chip export restrictions and China’s resumption of rare earth shipments.