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The Shanghai Composite rose 0.33% to close at 3,610, while the Shenzhen Component gained 0.64% to 11,289 on Tuesday, with mainland shares reaching multi-month highs. Investor sentiment was supported by anticipation surrounding the ongoing US-China trade talks in Stockholm, as both countries aim to extend their fragile truce by another 90 days ahead of the August 12 deadline. Beijing also ramped up efforts to combat deflationary pressures and curb industrial overcapacity. President Xi Jinping criticized local governments for overconcentrating investment in sectors such as artificial intelligence, computing power, and new energy vehicles, highlighting structural inefficiencies in the economy. Meanwhile, markets are looking to this week’s Politburo meeting for potential stimulus announcements aimed at supporting growth. Technology stocks led Tuesday’s rally, with standout gains from Eoptolink Technology (+8.8%), Zhongji Innolight (+9.4%), and Victory Giant (+3.6%).