China A50 breaks six-month range ahead of Trump–Xi summit

On Wednesday the FTSE China A50 rose above a six-month trading range after a stronger offshore yuan and the scheduled May 14–15 meeting in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping. The index has gained about 7% from a late-February baseline through early May.

The A50 remained nearly flat between Feb. 27 and March 30 during market turbulence linked to the U.S.–Iran conflict, while several global peers declined. Price action pushed the index above a range that held since late October, and the A50 has traded above its 20-day moving average since early April.

Since early April the index’s price moves have closely tracked the offshore yuan (CNH). The USD/CNH medium-term trend remains downward. Technical analysts mark a USD/CNH resistance near 6.8880 and identify support zones around 6.7740 and 6.7055.

From a technical perspective the medium-term bias is bullish while the A50 holds above a support near 15,460. Short-term upside targets include 16,100 and a Fibonacci extension near 16,340. The April 7 low at about 14,406 formed the base of an ascending channel that has supported the recent advance.

Momentum indicators show the A50 trading above its 20-day moving average since April 8 and the daily relative strength index rebounding from roughly the low 60s. Key support levels below current prices are near 15,120 and about 14,950, the latter coinciding with an intersection of medium- and long-term moving averages.

Policy and geopolitical developments are part of the market backdrop. An extended tariff truce reduced the U.S. tariff rate on Chinese goods to about 20.9% from levels that exceeded 100% at the onset of the most recent trade tensions. The May 14–15 summit in Beijing was delayed by the U.S.–Iran episode and is now scheduled for those dates.

Regulatory actions include Beijing’s recent blocking of a proposed purchase of an advanced AI start-up by a U.S. firm. China continues to import energy from Iran while the U.S. has taken steps to limit those flows. Those items are being weighed alongside currency and trade developments.

A sustained move below 15,460 would alter the near-term technical picture, while a clear break above the 16,100–16,340 band would extend the current breakout. Analysts will watch the May summit, tariff levels and currency trends for developments that may affect the index.