China, HK stocks gain on signs Beijing’s price-war crackdown lifts earnings

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