SHANGHAI: China’s blue-chip stocks and Hong Kong shares rose on Monday, as investors bolstering bets on Chinese tech shares amid Sino-US trade talks and ahead of an expected US rate cut this week overshadowed worries around weak economic data.
China’s blue-chip CSI300 Index ended the session up 0.2 percent, after hitting a 3-1/2-year high. But Shanghai stocks gave up earlier gains, closing down 0.3 percent.
Hong Kong’s benchmark Hang Seng Index rose 0.2 percent to close at a four-year high.
Data released on Monday showed China’s economy slumped in August, with factory output and retail sales growth missing forecasts and home prices continuing to fall. China’s credit, exports and fixed asset investments also saw sluggish growth.
Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said the broadly dismal data were already priced in by the market.
“The slowdown is not a surprise to the market. Investors already expect growth to weaken in the third quarter.”
Investors also looked past geopolitical and trade tensions, taking cues from Wall Street’s record highs, with the Federal Reserve widely expected to cut rates this week.
The market appears not bothered by tariff uncertainties as China and the US began negotiations in Madrid on Sunday, and Washington called on its allies to impose tariffs on Russian oil buyers. Treasury Secretary Scott Bessent said both sides had made good
progress on technical details but reaching a deal on other issues would be challenging.
Underscoring the complexity of the Sino-US ties, China’s Ministry of Commerce launched anti-discrimination and anti-dumping probes against US chips on Saturday.
“The US seeks to suffocate Chinese innovation. China has no choice but to fight back,” said Abraham Zhang, chairman of China Europe Capital. “This is a rare opportunity for domestic players to replace foreign technologies.”
China’s semiconductor stocks climbed, with Shanghai’s STAR Chip Index rising 0.5 percent. Hong Kong’s Hang Seng Tech Index advanced nearly 1 percent.
Elsewhere, Chinese battery stocks jumped on government plans to boost the sector.
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