China's blue-chip index firms as technology stocks shine

SHANGHAI: Technology stocks helped China's blue-chip index gain on Monday as investors hoped for continued policy support, while the Shanghai Composite index was pressured by a fall in financial firms.

The CSI300 index rose 0.1% to 5,246.82 points at the end of the morning session, while the Shanghai Composite index lost 0.1% at 3,605.58 points.

Heavyweight financial firms fell, with the CSI300 financials index down 1.5% by midday break and on track to snap a four-day rising streak.

Helping the market, the CSI new energy and CSI consumer discretionary index rose 2% and 1.3%, respectively.

Top battery maker Contemporary Amperex Technology (CATL) Co Ltd climbed 5.1% to a new high.

Tech stocks outperformed on Monday. Shenzhen's tech-heavy start-up board rose 2.1%, and Shanghai's tech-focused STAR50 index climbed 2.2%.

Beijing will not change or could even step up its support for the country's tech sector, which is the biggest good news for related shares in the A-share market, said Orient Securities in a report.

The brokerage added seven emerging industries, including new energy vehicles, remain the most important directions for long-term investors.

Data over the weekend showed profit growth at China's industrial firms slowed again in May as surging raw material prices squeezed margins and weighed on factory activity.

Profits at China's industrial firms rose 36.4% in May from a year earlier to 829.92 billion yuan ($128.58 billion), official data showed on Sunday. That was a slowdown from the 57% surge reported in April, according to National Bureau of Statistics.

Trading in Hong Kong's securities market was cancelled in morning session, and will resume at 0530 GMT on Monday after the cancellation of a black rainstorm warning.