HONG KONG: China and Hong Kong stocks jumped on Monday to extend a rally, led by rare earth and property sectors, as abundant liquidity fuelled continued gains.
** At the midday break, the Shanghai Composite index was up 0.9 percent at 3,858.59, a fresh 10-year high.
China’s blue-chip CSI300 index added 1.4 percent, surpassing the intraday high made last October to reach a four-year peak.
Turnover on the Shanghai and Shenzhen exchanges surpassed 2 trillion yuan for a ninth consecutive day, extending the longest such streak on record.
The rare earth sector was up 5.6 percent and the artificial intelligence sector up 3.5 percent.
The property sector jumped 5.8 percent, with developer China Vanke surging by the 10 percent daily limit, as Shanghai eased house purchasing restrictions.
The semiconductor sector added 1.1 percent at midday break after rallying nearly 6 percent in early trades. Chipmaker Cambricon Technologies jumped 5.5 percent to a record high.
“We see the rally continuing on abundant domestic liquidity from deposit migration, fund issuance, and insurance fund buying,” analysts at HSBC Qianhai said in a note.
The firm also lifted the end-2025 targets to 4,000 for the Shanghai Composite index and 4,600 for CSI 300, driven by abundant liquidity, suggesting an upside potential of 5-7 percent.
“There was visibly increasing amount of excitement/noise/debates among the onshore retail investors,” Goldman Sachs said in a sales note, adding that international investors’ interest towards A-share could also follow.
In Hong Kong, the benchmark Hang Seng Index was up 2.1 percent to 25,866.49, reaching the highest level since October 2021.
The tech index rose 3.1 percent, and Chinese H-share index listed in Hong Kong rose 2 percent.
Comments
Comments are closed for this article.