SHANGHAI: China and Hong Kong stocks ended slightly higher on Monday, led by property and tech shares, as investors weighed mixed macroeconomic data and remained cautious amid geopolitical tensions that dampened risk appetite.
China’s blue-chip CSI300 Index closed up 0.3%, while the Shanghai Composite Index gained 0.4%. Hong Kong benchmark Hang Seng was also up 0.7%.
China’s factory output growth hit a six-month low in May, while retail sales picked up steam, offering temporary relief for the world’s second-largest economy amid a fragile truce in its trade war with the United States.
The golden week holiday and discounts on e-commerce platforms starting in mid-May, ahead of the so-called “618” shopping event, should have helped to boost consumption during the month, said UBS analysts in a note.
“But it remains to be seen whether the momentum can sustain, especially as the effects of the consumer trade-in program begin to fade and tariff outlook remains uncertain.”
Meanwhile, Iranian missiles struck Israel’s Tel Aviv and the port city of Haifa on Monday, destroying homes and limiting risk appetite in the onshore and offshore markets.
Real estate shares traded onshore and offshore were up 2.4% and 2.0%, respectively, after a spokesperson for the National Bureau of Statistics said efforts to halt the sector’s decline were gaining traction.
Onshore artificial intelligence shares rose 0.9%, while tech majors listed in Hong Kong were up 1.2%.
New bank lending in China rose less than expected in May after hitting a nine-month low in April, as companies and consumers remained cautious about taking on more debt despite interest rate cuts and a trade truce between Beijing and Washington.
The CSI300 Financial Index rose 1.2%.
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