Chinese Company Earnings in Focus as Trump-Xi Summit Looms
A spate of major Chinese companies report earnings this week as President Donald Trump visits President Xi Jinping in China.
JD.com (JD) and Tencent Music Entertainment (TME) report today and Alibaba (BABA) and Tencent (TCEHY) release results Wednesday.
Presidents Trump and Xi are expected to discuss the U.S.-Iran war, trade, artificial intelligence, and more as the two countries navigate an increasingly complicated diplomatic situation.
Investors will be closely watching the meeting, originally scheduled for March and postponed due to war, not only for clear geopolitical and economic concerns, but also because a cadre of major U.S. business leaders also will attend. These include American executives from a wide swath of sectors: Elon Musk of Tesla/SpaceX (TSLA), Tim Cook of Apple (AAPL), Larry Fink of Blackrock (BLK), and other high-level representatives of Meta Platforms (META), Boeing (BA), GE Aerospace (GE), Goldman Sachs (GS), Visa (V), Mastercard (MA), Blackstone (BX), Cisco (CSCO).
Taiwan in the Crosshairs as Xi and Trump Meet?
Another difficult topic is Taiwan. China has long pledged to retake control of the province for symbolic, sovereign and geostrategic reasons. Discussion of Taiwan’s sovereignty is likely to be of extreme importance for Taiwan Semiconductor (TSM), which produces 90% of the world’s high-end computer chips. If China were to take over the island, especially by force, other nations could be drawn into a broader conflict.
Traders Watching for Xi-Trump Meeting Outcomes
Traders interested in the impact on Chinese markets in light of geopolitics and earnings events could consider the iShares China Large-Cap ETF (FXI), which includes large holdings in the names listed above as well as BYD (BYD), Baidu (BIDU), and many others. The fund showed a notable low of 34.77 on Mar. 27, which aligned with a previous major low from May 30, 2025. From there, price formed an upward trendline that has translated to a roughly +8% bounce. But the upward trend has so far stalled out at a notable resistance zone between about 37.60 to 38. This area marks a series of prominent highs and lows over the past year, most notably a repeated low boundary from July to February before the breakdown that coincided with the U.S.-Iran war.
The FXI also shows a potentially worrying technical sign for bulls, as it has thus far failed to overtake its previous highs from mid-April that stalled in the same resistance zone. The Relative Strength Index (RSI) also showed a similar picture of lower momentum, while major moving averages reflect little directionality. Potentially supportive downside areas include a gap that formed near 36.70 on May 5, as well as lows after another gap up near 35.90 on Apr. 9.
The options market may offer traders some clues on Chinese market direction as reflected in the ETF. The May 15 expiration on Friday gives a range of +/-1.1 (2.9%), which suggests that price would not make much progress beyond the aforementioned resistance zone around 38, or beyond the recent pre-gap lows near 36.70. Meanwhile, the Jun. 18 expiration gives a potential move of +/-2.8 (7.5%), for which the lower level aligns with the double-bottom that marked the recent 52-week lows around 34.77.
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