Shanghai ends seven-day losing streak while Hang Seng Index falls on thin trading
- China traders shrug off concerns from China’s drop in April industrial profit – the biggest percentage decline since December 2015
- Financial, tech stocks boost Shanghai benchmark as investors pin hopes on more government support measures
Mainland stocks posted solid gains while Hong Kong’s Hang Seng Index finished lower on thin trading, as China traders hoped for additional stimulus measures from Beijing.
All leading Chinese benchmarks ended higher on Monday, with the Shanghai Composite Index up 1.38 per cent, or 39.38 points at 2,892.38. The CSI 300, which tracks blue chips listed in both Shanghai and Shenzhen bourse, also rose 1.21 per cent, 43.29 points, at 3,637.2.
Traders shrugged off China’s industrial profit report for April, down 3.7 per cent year-on-year, which marked the biggest drop since December 2015.
Instead, investors felt positive that the government will unveil more economic growth stimulus measures, or subsidies and tax cuts for the country’s tech sector to counter the technology “cold war” set off by Washington’s increasing clampdown on Chinese tech companies.
Meanwhile, the Hang Seng narrowed its morning losses of more than 200 points to end down 0.24 per cent lower, or 65.84 points, at 2,7288.09.
China Mobile and selective financial stocks drove the Hong Kong benchmark lower, with trading demand primarily driven by short covering among selective blue chips.
