China, HK stocks gain after data shows industrial profits rose last year

SHANGHAI: China and Hong Kong stocks edged up on Tuesday, on the back of a recovery in corporate earnings, according to government data.

The Shanghai Composite Index climbed 0.2 percent at close, while the blue-chip CSI300 Index was little changed. In Hong Kong, the Hang Seng Index was up 1.4 percent.

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.

Overnight strength on Wall Street also aided markets. 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 1.7 percent after Hua Chuang Securities forecast the sector to post robust earnings, driven by investment returns.

An index tracking gold-related stocks hit a record as the yellow metal soared.

Hong Kong-listed shares of Zijin Gold International jumped 11.6 percent after the miner said it would buy Canada’s Allied Gold for global expansion.

Shares of its Shanghai-listed parent Zijin Mining rose nearly 3 percent.

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.