China stocks rise as tech shares extend rally, Hong Kong up
- At the midday break, the Shanghai Composite index was up 0.2% at 3,859.62 points
HONG KONG: China stocks rose on Thursday, led by tech shares, as investors remained focus on sector trends during a quiet policy period before major holidays.
At the midday break, the Shanghai Composite index was up 0.2% at 3,859.62 points, on track to register a 1% gain for the week. China’s blue-chip CSI300 index was up 0.9%.
“We’re sticking with our view of a steady, gradual bull market and maintaining our focus on tech themes,” analysts at Topsperity Securities said, adding that the industry trends will continue to be the driver for short-term market direction.
Trading could be light, given the current policy lull following the Federal Reserve’s meeting, China-US leaders’ call, and ahead of the National Day and mid-autumn holidays next week, they added.
Investors were also watching for Thursday’s staff-level technical talks between US and Chinese officials at the US Treasury, focused on trade and economic issues, Reuters reported.
Tech sectors led the gains on Thursday, with the artificial intelligence up 2.9% and semiconductor shares up 0.4%.
The rare earth sector added 0.9%, following a news report that Group of Seven (G7) members and the European Union are considering price floors to promote rare earth production.
Financials-related shares dragged on the market, with the banking sector weakening 0.9% and the insurance sector down 0.3%.
In Hong Kong, the benchmark Hang Seng Index was up 0.4% at 26,633.81.
The Hang Seng Tech Index rallied 1.9%, on track to register the eighth straight month of gains. Shares of Alibaba extended gains to a fresh four-year high.