Hong Kong stocks gain slightly, China flat on profit-booking

HONG KONG, – Hong Kong stocks logged marginal gains on Monday, while Chinese equities were range-bound as investors started to pocket gains from a tech-driven rally and awaited further policy signals from President Xi Jinping’s meeting with private enterprises.

** At the midday break, the Hang Seng Index gained 0.18% to 22,661.9. It crossed the 23,000 level in early trade to scale a fresh year-to-date high and approached the previous peak reached in October 2024.

** “As the index approaches last year’s high, some investors who bought at the peak in October 2024 might take profits,” Richard Tang, China Strategist at Julius Baer, said.

** Xi Jinping met private business leaders in Beijing on the day, official news agency Xinhua said.

** Last week, Reuters reported that top Chinese tech entrepreneurs, including Alibaba co-founder Jack Ma and Tencent CEO Pony Ma, would attend the symposium aimed at boosting private-sector sentiment.

** Tech stocks, which logged their best winning streak in over two years, saw growing divergence.

** Despite Tencent’s 4% rise after the internet giant said it was introducing DeepSeek’s artificial intelligence model for testing in its messaging app, broader Hang Seng Tech Index dropped 0.1% by midday.

** Alibaba fell 0.08%, while Baidu lost 6.8%.

** The Shanghai Composite index added 0.06% to 3,348.85 points, while China’s blue-chip CSI300 index was up 0.07% to 3941.76 points.

** Some banks, including BofA Securities, warned of short-term over-shoot optimism.

** “We caution that China market may still face short-term negative catalysts from policy disappointment, geopolitical tensions and weak macro data/earnings,” BofA analysts said.

** CICC analysts said the rally led by Hong Kong-listed tech stocks was driven by speculative trading and passive funds, while foreign long-term investors remained on the sidelines.

** Around the region, MSCI’s Asia ex-Japan stock index firmed 0.35%, while Japan’s Nikkei index gained 0.15%.

This article was generated from an automated news agency feed without modifications to text.