SHANGHAI: China and Hong Kong stocks rose on Monday, buoyed by signs of continued money inflows, and the creation of a free trade port in tropical island Hainan.
- China’s blue-chip CSI300 Index rose 0.8% by the lunch break, while the Shanghai Composite Index gained 0.6%.
- In Hong Kong, the Hang Seng index climbed 0.2%.
- Latest data shows China’s private fund sector expanded to a record 22.1 trillion yuan in November, aided by strong flows into equities.
- Meanwhile, more than a dozen newly launched Chinese funds with a focus on the Hong Kong market finished fundraising ahead of schedule, with many rushing to build positions, indicating an urge to buy the dip.
- Market sentiment was also lifted by surges in Hainan stocks, after China last week started operation of the Hainan Free Trade Port in a landmark move signalling Beijing’s commitment to opening-up.
- Potential beneficiaries, including China Tourism Group Duty Free Corp, Hainan Airlines Holding Co Ltd , Hainan Airport Infrastructure Co Ltd and Hainan Strait Shipping Co Ltd, all shot up by their 10% daily limit.
- “The market is expected to resume its upward trend, and is no longer hesitating,” Orient Securities said in a note to clients.
- “Now could be a good time to add positions,” the brokerage said, recommending blue-chips and undervalued consumer players.
- China’s chip makers and artificial intelligence stocks jumped on Monday, while banks and industrial stocks fell.
- Xiaomi Corp dropped 2.1% in Hong Kong and BOE Technology Group lost 0.7% in Shenzhen, underperforming the broader market, after US lawmakers urged the Pentagon to add them to a list of entities allegedly assisting the Chinese military.‑Reuters
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