China stocks rise as tech shares extend rally, Hong Kong up

HONG KONG: China stocks rose on Thursday, led by tech shares, as investors remained focus on sector trends during a quiet policy period before major holidays.

• At the midday break, the Shanghai Composite index was up 0.2% at 3,859.62 points, on track to register a 1% gain for the week. China’s blue-chip CSI300 index was up 0.9%.

• “We’re sticking with our view of a steady, gradual bull market and maintaining our focus on tech themes,” analysts at Topsperity Securities said, adding that the industry trends will continue to be the driver for short-term market direction.

• Trading could be light, given the current policy lull following the Federal Reserve’s meeting, China-US leaders’ call, and ahead of the National Day and mid-autumn holidays next week, they added.

• Investors were also watching for Thursday’s staff-level technical talks between US and Chinese officials at the US Treasury, focused on trade and economic issues, Reuters reported.

• Tech sectors led the gains on Thursday, with the artificial intelligence up 2.9% and semiconductor shares up 0.4%.

• The rare earth sector added 0.9%, following a news report that Group of Seven (G7) members and the European Union are considering price floors to promote rare earth production.

• Financials-related shares dragged on the market, with the banking sector weakening 0.9% and the insurance sector down 0.3%.

• In Hong Kong, the benchmark Hang Seng Index was up 0.4% at 26,633.81.

• The Hang Seng Tech Index rallied 1.9%, on track to register the eighth straight month of gains. Shares of Alibaba extended gains to a fresh four-year high.