China, HK markets climb on strong financials as traders shift from oil stocks
- Hong Kong benchmark Hang Seng was up 1%
SHANGHAI: China and Hong Kong stocks climbed on Tuesday, supported by financials, as investors rotated out of oil-linked counters that had benefited from Middle East tensions and refocused on fundamentals.
China’s blue-chip CSI300 Index rose 0.3% by the lunch break, while the Shanghai Composite Index was roughly flat. Hong Kong benchmark Hang Seng was up 1%.
Financial shares led gains, with onshore financials up 1.6% and offshore peers up 1.2%.
Insurance names climbed 2.3%. Market reaction was muted after US President Donald Trump said on Monday that he is seeking to delay a highly anticipated trip to China by about a month because of the Middle East conflict.
Shares in the onshore coal and oil & gas sectors each fell 1.7% after oil prices retreated from recent highs, following the passage of some vessels through the critical Strait of Hormuz.
Hong Kong shares, particularly the Hang Seng Tech Index , had built up sizable short positions during the recent selloff, analysts at Huatai Securities said in a note.
With equity volatility rising globally, the risk-reward for leveraged long-short bets has deteriorated, prompting short covering over the past two weeks that helped put a floor under the market, analysts added.
The Hang Seng Tech Index extended gains on Tuesday, up 1.2%, after hitting its lowest level in nearly a year earlier this month.
Investors eye Tencent’s annual results, due on Wednesday, to gauge its AI growth, which could influence the index.
Shares of Bright Smart Securities surged 66% after Ant Group said it had received regulatory approval to acquire a controlling stake in the company.
Jewellery group Chow Sang Sang rose as much as 13%, marking its largest one-day gain in seven months on the back of a robust earnings forecast. ‑Reuters
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