PRE-MARKET CHINESE STOCKS NEWS: US and China are working on an agreement to establish a hotline over AI

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PBoC injects CNY 35bln via 7-day reverse repos with the rate at 1.4%

PBoC sets USD/CNY mid-point at 6.7459 vs Exp. 6.6989 (prev. 6.7487)

PRE-MARKET CHINESE STOCKS NEWS: US and China are working on an agreement to establish a hotline over AI

Taiwan's central bank is planning to meet with banks to ensure lending to companies

PRE-MARKET TAIWAN AND SINGAPORE STOCKS NEWS: Tech stocks in focus after the Nasdaq outperformed stateside and notched a record close amid a surge in Meta shares and with AMD joining the USD 1tln market cap club

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Haier Smart Home (6690 HK) - Co. repurchased 600k H-shares and 2.64mln A-shares on September 21st. (AAStocks)

Sinopec (386 HK) - Co. repurchased 5.494mln shares on Monday for approximately HKD 24.37mln. (AAStocks)

Financials - Certain banks in China increased deposit rates amid competition for clients.

Trade

US Treasury Secretary Bessent said he discussed economics and AI with China and that there are some deliverables, while he added that the two sides started an AI dialogue, will open an incident line on AI and will meet in two months in Shenzhen to discuss AI. Bessent also said Trump and Xi could meet two more times after this week's meeting, while he noted that there were about 12 hours of talks on Sunday. Furthermore, he said tariffs were discussed with China, adding that the US and China are discussing items that could be included in most-favoured-nation tariffs and that the trade truce was a focal point of the talks.

USTR Greer said China is doing what it promised on soybeans, adding that rare earths are coming in but "we'd like higher quantities" and that there is no grand bargain to be had with China. Greer also stated that Boeing (BA) is making progress on finalising its order for 200 Chinese aeroplanes announced earlier this year, according to a Fox interview.

US and China are working on an agreement to establish a hotline over AI, while also discussing deals to exempt agricultural products, medical supplies and some low-tech electronic goods on both sides, according to Fox News.

More than two-dozen lawmakers reportedly urged US President Trump to maintain the ban on Chinese automakers.

China's Vice Finance Minister said he talked about trade, investment and AI with the US on Monday.

Chinese Foreign Minister Wang Yi said China and the EU should not be in a trade war, calling for stronger strategic communications with Germany.

Other News

PBoC Governor Pan reiterated plans to implement a moderately loose monetary policy and vowed to keep pushing forward financial opening up.

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