SHANGHAI, – China and Hong Kong stocks rose on Monday, buoyed by signs of continued money inflows, and the creation of a free trade port in tropical island Hainan.
** China’s blue-chip CSI300 Index rose 0.8% by the lunch break, while the Shanghai Composite Index gained 0.6%. In Hong Kong, the Hang Seng index climbed 0.2%.
** Latest data shows China’s private fund sector expanded to a record 22.1 trillion yuan in November, aided by strong flows into equities.
** Meanwhile, more than a dozen newly launched Chinese funds with a focus on the Hong Kong market finished fundraising ahead of schedule, with many rushing to build positions, indicating an urge to buy the dip.
** Market sentiment was also lifted by surges in Hainan stocks, after China last week started operation of the Hainan Free Trade Port in a landmark move signalling Beijing’s commitment to opening-up.
** Potential beneficiaries, including China Tourism Group Duty Free Corp, Hainan Airlines Holding Co Ltd , Hainan Airport Infrastructure Co Ltd and Hainan Strait Shipping Co Ltd, all shot up by their 10% daily limit.
** “The market is expected to resume its upward trend, and is no longer hesitating,” Orient Securities said in a note to clients.
** “Now could be a good time to add positions,” the brokerage said, recommending blue-chips and undervalued consumer players.
** China’s chip makers and artificial intelligence stocks jumped on Monday, while banks and industrial stocks fell.
** Xiaomi Corp dropped 2.1% in Hong Kong and BOE Technology Group lost 0.7% in Shenzhen, underperforming the broader market, after U.S. lawmakers urged the Pentagon to add them to a list of entities allegedly assisting the Chinese military.
This article was generated from an automated news agency feed without modifications to text.