Successful preliminary talks between Washington and Beijing, as well as signals of targeted compromises, are supporting investors’ appetite for risk assets, Freedom Broker analysts believe. Market participants are awaiting the talks between US President Donald Trump and Chinese President Xi Jinping, scheduled for September 24.
The market is counting on a search for compromises
The US and China held talks in New York on trade and artificial intelligence issues aimed at preparing for the upcoming summit between US President Donald Trump and Chinese President Xi Jinping in Washington on September 24, US Trade Representative Jamieson Greer said. The sides will also continue discussing an extension of the trade truce, which expires on November 10. At the same time, disagreements between Washington and Beijing remain on a number of issues, including exports of rare earth metals, so the US favors a phased extension of the agreements.
The investment community expects Donald Trump and Xi Jinping to focus on finding compromise solutions during the upcoming summit, Freedom Broker experts note.
According to the analysts, market participants expect an easing of tensions between the US and China. One positive signal was a meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Bessent called the talks successful. During the meeting, the sides discussed trade relations, access to technologies, and cooperation in the field of artificial intelligence.
The pharmaceutical sector received a positive signal
Freedom Broker also cited as another important signal Washington’s statement about the possibility of keeping US pharmaceutical companies’ right to license most drugs from Chinese developers. This information supported China’s biopharmaceutical sector, the analysts note.
Chinese biopharma in recent years has become a major hub for the development of innovative drugs, in particular for the treatment of oncological, immune, and metabolic diseases. Notable sector participants include the developer of anticancer drugs BeOne Medicines (ONC), Jiangsu Hengrui Pharmaceuticals, Innovent Biologics.
Chinese companies are actively out-licensing rights to promising drugs to overseas partners: in the first half of 2026 alone, the potential value of such agreements reached a record $110 bn. This is not about permission to sell a Chinese drug in the US, but about the ability to conclude licensing deals. Under such an agreement, a US pharma company receives the rights to further develop and commercialize the drug outside China, conducts the necessary trials, and obtains approval from regulators.
In such a structure, the Chinese developer typically receives an upfront payment, milestone payments, and a percentage of future sales. The US Treasury is preparing rules that could preserve most such deals, except for projects related to potentially dangerous pathogens and dual-use technologies.
Interest in risk assets
Successful preliminary contacts between Washington and Beijing, as well as signals of possible targeted compromises, are supporting interest in risk assets, Freedom Broker analysts emphasize. In their view, the balance of risks for the US market remains neutral amid moderate volatility.
Risk assets are financial instruments that can deliver higher returns, but are more sensitive to economic and political shocks and can lose value significantly. They typically include equities, high-yield corporate bonds, commodities, and emerging-market assets
This is not an individual investment recommendation.