BEIJING: China stocks ended flat on Monday as money rotated into energy, agriculture and banking stocks, away from the crowded tech sector, while Hong Kong shares rose.
The blue-chip CSI300 Index and the Shanghai Composite Index were little changed at market close.
Hong Kong’s benchmark Hang Seng Index climbed 1.1 percent.
The market was aided by fresh regulatory measures aimed at supporting listed companies.
The China Securities Regulatory Commission on Friday proposed rule changes designed to make it easier for listed firms to refinance.
Separately, new share trading rules took effect on Monday, introducing market-making mechanisms to Shenzhen’s ChinNext market and improving arrangements for block trades.
“Liquidity remains ample, creating conditions for fresh capital inflows,” Minsheng Royal Fund Management Co said in a note. “We remain optimistic on Chinese equities.”
Orient Securities said that risk appetite, previously highly concentrated in AI, is broadening into certain cyclical sectors as well as high-end manufacturing.
Energy, agriculture and consumer staples stocks were top gainers on Monday.
Cyclical sectors including coal, banking and materials also advanced.
But some previously hotly-chased sectors, including robotics, satellite and battery corrected sharply. Shanghai’s tech-focused STAR Market also retreated.