SHANGHAI: China and Hong Kong stocks rose on Tuesday, as investors assessed signs that Beijing’s crackdown on price wars is supporting a recovery in corporate earnings.
China’s blue-chip CSI300 Index climbed 0.3% by the lunch break, while the Shanghai Composite Index traded steady.
In Hong Kong, the Hang Seng Index was up more than 1%.
Investor sentiment was buoyed by government data showing industrial profits in China increased last year for the first time since 2021.
Overall profitability edged higher in December, “mostly driven by improving downstream profit margin,” Goldman Sachs said in a note to clients.
The market was also aided by overnight strength on Wall Street. Both the S&P 500 and the Nasdaq advanced for a fourth consecutive session on Monday, hitting their highest levels in more than a week.
Tech stocks led the rise in China. Chipmakers , electronics firms and telecom stocks were among the best performers.
An index tracking China-listed insurers jumped nearly 3% after Hua Chuang Securities forecast the sector to post robust earnings, driven by investment returns.
An index tracking gold-related stocks hit record as prices of the yellow metal soared.
Hong Kong-listed shares of Zijin Gold International jumped more than 10% after the miner said it would buy Canada’s Allied Gold for global expansion.
Shares of its Shanghai-listed parent Zijin Mining rose nearly 5%.
Financial shares led the gains in Hong Kong.
China’s central bank pledged on Monday to promote greater financial market connectivity between the mainland and Hong Kong, part of efforts to promote the city’s international financial centre status. ‑Reuters
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