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China-focused stocks surge on U.S.-Beijing diplomatic talks

Chinese equities rallied sharply Wednesday as President Donald Trump and U.S. business leaders met with Chinese officials in Beijing for high-level negotiations. Alibaba shares jumped 8% despite missing earnings expectations, driving the iShares China Large-Cap ETF (FXI) up 2.5%. The KraneShares China Internet ETF (KWEB) emerged as a top-10 traded security, with 750,000 contracts exchanged and $48 million of $50 million in options premium concentrated in call positions. The 32-strike call expiring Friday proved most popular by volume. Ford Motor gained 13% after an analyst highlighted potential benefits from its energy-storage licensing deal with Chinese battery manufacturer CATL. Ford options reflected bullish sentiment, with call volume exceeding put volume by five-to-one. Traders attributed gains to renewed optimism about U.S.-China relations and expectations for Chinese technology stocks.