SHANGHAI: Chinese stocks rose on Monday, helped by fresh signs of government-orchestrated support measures, while Hong Kong shares fell amid persistent fears of an escalation in the Middle East war.
** China’s blue-chip CSI300 Index rose 0.7% by the lunch break. The Shanghai Composite Index was up 0.2%, standing above the psychologically key 3,000-point mark.
** Chinese tech stocks were strong, but banking shares fell on the sector’s shrinking margins while property shares declined as China Evergrande Group moved toward a possible liquidation. ** Hong Kong’s Hang Seng Index lost 0.3%.
** More than 30 Chinese-listed companies unveiled share buyback and purchase plans over the weekend while major mutual fund house E Fund Management said it would invest in its own product.
** They’re joining a growing number of companies heeding to government calls to help revive a stock market that last week hit its lowest levels since 2019.
** Shares of most companies that announced share buybacks. Hainan Mining jumped 6.7%, while Vatti Corp and Zhejiang Sanmei Chemical, rose 1.8% and 2.8%, respectively.
China stocks end up on $137bn sovereign bond issue plan
** Sentiment was also aided by tighter rules against short-selling activities effective on Monday. ** The tech-focused STAR 50 Index climbed 2.9%, while the CSI Info Tech Index jumped 3.2%.
** But the CSI Banks index dropped 1.6% to 11-month lows, after four of China’s biggest lenders posted shrinking margins in the third quarter, compounding concerns over the sector’s health in a struggling economy.
** Hong Kong stocks, which are more vulnerable to global sentiment, sank as Israel’s push into Gaza stirred fears of a wider conflict.
** Caution also reigned ahead of central bank meetings in the United States, Britain and Japan this week.
** Mainland property shares traded in Hong Kong fell 0.4%, with Evergrande shares slumping as much as 23% as the city’s High Court hears a winding-up petition against the embattled property developer.
Comments
Comments are closed.