SHANGHAI: Mainland China and Hong Kong stocks ended higher on Monday, driven by gains in non-ferrous metals and AI shares, as investor optimism over a potential Federal Reserve rate reduction later this month outweighed concerns over domestic economic weakness.
At the close, the Shanghai Composite index advanced 0.65 percent, while the blue-chip CSI300 index rose 1.1 percent.
The smaller Shenzhen index ended up 1.02 percent and the start-up board ChiNext Composite index was higher by 1.31 percent.
Non-ferrous metal and AI-related shares led gains, with sub-indexes tracking the sectors rising 3.03 percent and 2.43 percent, respectively.
In Hong Kong, benchmark Hang Seng Index rose 0.67 percent, while the tech index advanced 0.82 percent.
Investors will focus on comments from Fed Chair Jerome Powell later in the day for more clues on the US monetary policy outlook.
Earlier dovish comments from policymakers have led traders to price in an 87 percent chance of a US rate cut later in the month.
On the domestic front, China’s factory activity contracted last month, according to both official and private surveys. Investors will look to the upcoming Central Economic Work Conference later this month for possible hints on the policy agenda for next year.
Bucking the trend, Hong Kong-listed shares with cryptocurrency-related businesses tumbled after China’s central bank vowed to crack down on virtual currencies and flagged concerns about stablecoins.
So far this year, the Shanghai stock index is up 16.8 percent? and the CSI300 has risen 16.3 percent, while the HIS has jumped about 30 percent.
“Capital inflows have returned based on the net FX settlement data, as foreign investors have increased their holdings of domestic Chinese equities consistently since April 2025, and this is expected to continue in 2026,” ANZ analysts said.