China stocks jump as investors cheer corporate earnings; Hong Kong up

SHANGHAI: China stocks climbed more than 1% on Tuesday, underpinned by new energy and healthcare shares, as investors cheered upbeat corporate earnings.

** The CSI300 index was up 1.1% at 5,102.07 points by the end of the morning session, while the Shanghai Composite Index gained 0.6% to 3,455.44 points.

** Leading the gains, the CSI300 new energy index and the CSI300 healthcare index rose 1.9% and 1.8%, respectively.

** Chinese electric vehicle maker BYD Co Ltd, , which is backed by billionaire Warren Buffett, on Monday reported a 162% growth in 2020 net profit as it became a major mask maker amid the COVID-19 pandemic.

** But analysts said market sentiment remained weak and investors should not have too much hope on the sustainability of the rally.

** For now, it's more of a rebound following the recent market corrections, Huaxi Securities analysts said in a report, adding that cyclical blue-chip firms with low valuations and good cash conditions are relatively safe for investors.

** The Sino-UStensions and expectations of liquidity tightening had curbed risk appetite in the A-share market, while the US Treasury yields could rise to about 2% in the future, limiting the market rebound, the brokerage added.

** The Hang Seng index added 1.2% to 28,672.76 points, while the Hong Kong China Enterprises Index gained 1.1% to 11,063.61.

** The Hang Seng tech index and the Hang Seng industrials index added 3.2% and 2.2%.

** Beijing approved a sweeping overhaul of Hong Kong's electoral system on Tuesday, a senior politician who works with China's parliament on matters relating to the former British colony's mini-constitution told Reuters.