China stocks close at highest level since 2021 on upbeat trade data

HONG KONG, Aug 7 (Reuters) - China stocks rose for a fourth straight day to close at a 3-1/2-year high on Thursday, as upbeat export data added fuel to the recent market rally despite renewed U.S. tariff threats.

** The Shanghai Composite index .SSEC climbed 0.2% to 3,639.67, the highest such close since December 2021. The blue-chip CSI300 index .CSI300 was little changed.

** China's exports beat forecasts in July with outbound shipments up 7.2% year-on-year, customs data showed, as manufacturers made the most of a tariff truce with the United States.

** Markets largely looked past U.S. President Donald Trump's comments on Wednesday that he could announce further tariffs on China similar to the additional 25% duty imposed on imports of Indian goods over its Russian oil purchases, depending on what happens.

** Investors remain focused on an August 12 deadline to see if Beijing and Washington will reach a durable tariff agreement.

** "The upward trend is still intact," analysts at Pacific Securities said in a note, adding markets remain optimistic about U.S.-China trade talks while technical indicators continue to show bullish momentum.

** Leading onshore gains on Thursday, the rare earth sector .CSI930598 rallied 3.2% to near a three-year high. The energy sector .CSIEN added 0.8% and banking index .CSI399986 gained 0.4%.

** The semiconductor sector .CSI931865 gave up initial gains to close largely flat after Trump said the U.S. could levy a 100% tariff on some chip imports.

** In Hong Kong, the benchmark Hang Seng Index .HSI reversed earlier losses with a 0.7% gain, and the tech index .HSTECH added 0.3%.

** Local developers .HSNP jumped 2.5% as New World Development < 0017.HK> surged as much as 20% on a report of talks that could potentially take it private.