SHANGHAI: China stocks rose on Friday, as signs of fresh Sino-US tensions in technology fuelled bets on shares of local chip makers, while banks rose after benchmark lending rates were left unchanged.
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Hong Kong shares also edged up, but casino stocks fell after Chinese President Xi Jinping urged Macau to show “courage” to change and innovate, potentially reducing the city’s reliance on gambling.
China’s blue-chip index CSI300 rose 0.3% by the midday break, while the Shanghai Composite index gained 0.5%. Hong Kong’s stock benchmark Hang Seng was up 0.1%.
China’s policy-triggered bull run that started in late September has lost steam, but trading remains active, especially among smaller stocks. Outstanding margin trading – a barometer of leveraged bets – hovered near a nine-year high of 1.87 trillion yuan ($256.21 billion).
Chinese technology shares led the gains, after The Information reported that the US Department of Commerce has recently asked Nvidia to look into how the company’s products ended up in China over the past year.
The STAR Chip index jumped 4.8%, while an index tracking China-listed semiconductor companies surged 4.4%. Tech giants traded in Hong Kong were up 0.6%.
The CSI Banks index rose 0.6% after China left its benchmark lending rates unchanged at the monthly fixing on Friday. A cut in lending rates would erode banks’ profitability.
In another sign that the industry’s net interest margin could be near its bottom, Chinese banks in several cities have taken the unusual step of raising mortgage rates, Chinese media reported.
Energy shares fell, after state refining giant Sinopec said China’s oil consumption is set to peak by 2027.
In Hong Kong, tech shares were among the biggest gainers, while energy and materials sectors weighed.
Hong Kong-listed casino operators including Galaxy Entertainment, Wynn Macau, MGM China and Sands China declined.
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