China stocks ended higher Tuesday, supported by a return of foreign capital inflow and investors’ hopes on further economic stimulus measures. In Hong Kong, the Hang Seng Index also finished higher on selective financials gains. The Shanghai Composite ended 0.61 per cent, or 17.53 points higher, at 2909.91, its highest level since May 16. The CSI 300, which tracks blue chips listed on the Shenzhen and Shanghai bourses, was up 0.96 per cent, or 35.06 points at 3,672.26. Buying interests returned to old economy stocks, with Kweichow Moutai up 1 per cent at 888 yuan, after investment bank CICC said in a note that it expects the liquor maker’s net profit and revenue may grow more than 10 times over the next decade. Foshan Haitian Flavouring was up 5.33 per cent at 98.78 yuan. Hong Kong’s second-wealthiest man Lee Shau-kee hands over Henderson Land reins to his two sons as he retires as chairman In Shenzhen, Wens Foodstuff was the top gainer on the Shenzhen Component Index, shooting up 7.06 per cent at 38.38 yuan. Its rise was in tandem with other pig-related stocks, as a gauge tracking these stocks on the two exchanges rose 3.38 per cent, outperforming the broader market. On Monday, Guo Shuqing, head of China top financial regulatory China Banking and Insurance Regulatory Commission (CBIRC) said in an interview with the country’s state television broadcaster CCTV that the trade war with the US has had a limited impact on China’s financial market, and going forward the impact will be “even smaller”. Stocks Blog: China, Hong Kong markets gain, ignoring latest gloomy trade comment by Trump The comment again stoked speculation that Beijing will launch further monetary or stimulus measures to support its economy amid the protracted US-China trade war. Also boosting the mainland indexes was foreign capital inflow. Northbound trading into the mainland through the Stock Connect programme recorded net inflows, reversing the net outflow seen in the previous eight sessions. Net inflow results from stronger buying turnover outweighing selling. However, some analysts said the gains seen in leading Chinese benchmarks this week might not be sustainable. China’s central bank adds liquidity to nation’s financial system as Baoshang Bank’s seizure rattles domestic markets Ben Kwong Man-bun, a director at brokerage KGI Asia, said overall, he expects a pattern of the market going in zigzags, where selling is followed by a day of small rebound in the near term. “In absence of any near-term resolution of the US-China trade war, I wouldn’t expect A-share or the Hong Kong market to stage any sustainable rebound. At the moment, investors are more inclined towards a bearish views, and would take profit once they see the indexes have risen by a certain range,” said Kwong. Kwong sees downside support for the Shanghai Composite Index at 2,800. The Hang Seng Index took a breather from Monday’s drop and ended up 0.38 per cent, or 102.72 points higher, at 27,390.81. Leading the index higher were financials: AIA (1299 HK) gained 2.31 per cent to HK$77.50, while Ping On Insurance (2318 HK) gained 1.54 per cent to HK$85.70. Hong Kong Exchanges & Clearing (388 HK), the city’s bourse operator, closed up 2.17 per cent at HK$254.60, after Bloomberg reported Alibaba Group Holding is considering a second listing in Hong Kong through a US$20 billion flotation, second after its New York listing in 2014. The automobile sector was super hot. Geely Automobile (175 HK) closed as the top percentage gainer among blue chips, up 4.66 per cent at HK$13.02. The sector was the second top gaining industry.