China stocks closed up on Monday as signs of easing Sino-U.S. tensions boosted investor sentiment. Tech shares led Hong Kong stocks up.
** China’s blue-chip CSI300 Index closed up 0.2%, while the Shanghai Composite Index gained 0.5%. Hong Kong’s benchmark Hang Seng Index was up 1.9%. ** James Wang, head of China strategy at UBS, held a positive view towards China’s equity market in 2024, projecting a 15% upside to the MSCI China index, given the current market’s trough valuation, low investor positioning and accelerating policy support.
** Wang prefers shares traded in Hong Kong over China’s onshore shares and likes the internet sector the most. ** Also helping lift investor sentiment are some signs of tensions easing between the world’s two largest economies.
** Last week’s meeting between U.S. President Joe Biden and Chinese President Xi Jinping is a badly needed signal that the world needs to cooperate more, International Monetary Fund Managing Director Kristalina Georgieva said on Friday. ** Foreign capital recorded a net inflow of 1.4 billion yuan ($194.15 million) via a northbound trading link after the past two weeks had seen mostly outflows.
** China left benchmark lending rates unchanged at a monthly fixing on Monday, matching market expectations. ** A lower lending rate would help the troubled property sector but will add pressure on banks as their net interest margins were already tight, analysts said.
** CSI Financials Index edged up 0.1%. ** Healthcare and tourism stocks were up 1.2% and 1.6%, respectively.
** In Hong Kong, tech stocks rallied 2.5%, with Tencent up 3.6%. ** Shares of property developer Sunac China Holdings jumped as much as 11.8% after the company’s offshore debt restructuring became effective.
($1 = 7.2111 Chinese yuan renminbi)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)