China’s stocks inch higher as tech shares rise
The tech rally helped offset losses in banking and insurance shares following Beijing's capital-injection plan.
Beijing, China - Chinese stocks saw a slight uptick on Monday, as technology shares surged, offsetting declines in banking and insurance firms following Beijing's plan to inject capital into the financial system. The Shanghai Composite index rose 0.07% to 3,932.70 points, while the CSI300 index increased by 0.6%. Technology sectors performed well, with the ChiNext Composite index surging 3.4% and the STAR50 index climbing 2.4%.
The chip sector rose 3.4% and the CSI 5G Communication Index gained over 6%, with Zhongji Innolight surging by its 10% daily limit. However, the insurance sector slipped 2.6% and the banking sector declined 1.5%, following the finance ministry's announcement of a combined $54 billion in capital injections into state-owned insurers and banks.
President Xi Jinping is assembling a significant business delegation for his visit to Washington, a rare move amid US doubts about Chinese investment and Beijing's tense relations with private enterprise. Analysts at Nanhua Futures expect markets to remain range-bound due to lingering external uncertainties, with shifts in US interest rate expectations playing a crucial role in market direction.
In Hong Kong, the Hang Seng Index and the Hang Seng Tech Index both dropped around 0.9%. Across the region, Asian shares rallied on Monday, buoyed by a strong US jobs report indicating positive global growth prospects, and oil prices edged higher after the US and Iran targeted ships in the Gulf.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
