The benchmark Shanghai Composite Index rose 1.7% as of 10.45 am local time, erasing its decline from the end of last week.

The benchmark is up 9.4% this year.

Shenzhen’s composite gauge advanced 2.2% to its highest in nearly five months.

Hong Kong equities were also strong, with the Hang Seng Index climbing 1.8% to 28,386.

The US and China are set to hold further talks in Washington following meetings in Beijing last week that US President Donald Trump described as “very productive” after being briefed by his team on its return.

New yuan loans, which expanded to a record in January, also fueled optimism on Chinese stocks.

“The only two things that investors are looking forward to seeing are easing trade tensions between China and the US and a more proactive policy stance at home,” said Shen Zhengyang, a Shanghai-based analyst with Northeast Securities.

“Now that there are positive signs on their biggest concerns, the market will definitely trend up.”

Brokerages and energy producers were among the best performers, with sector gauges up at least 3.4%.

Macau casino stocks rebounded from a bruising Friday, when they fell on concerns the Chinese government’s focus on illegal lending would hurt gaming revenue.

JPMorgan said that reaction in stocks was perhaps overdone.

MGM China led casino gains, rising 6.5%, its biggest jump since Dec 3.