Chinese stocks close higher, led by the energy and financial sectors; Hong Kong stocks plummet

Chinese stocks closed slightly higher on Monday, supported by gains in energy and financial stocks, while small-cap stocks weighed on overall performance. Hong Kong stocks fell.

For 2024, onshore stocks are expected to post gains for the first time after three years of losses, as several stimulus measures since September have improved market sentiment.

China’s CSI300 index closed 0.5% higher, while the Shanghai Composite index rose 0.2%. Hong Kong’s benchmark Hang Seng index fell 0.2%.

Energy stocks rose 1.3%, leading gains in the onshore market, while financial stocks rose 1.2%. Small-cap stocks traded on the Beijing Stock Exchange fell 4.4%.

The market is expected to remain active in the first half of January, but external disturbances are likely to increase in the second half, leading to a cooling of market sentiment, a strategist at Citic Securities said.

Political expectations are expected to strengthen again after the Lunar New Year,” he said.

Trading volumes have fallen since peaking in October triggered by a series of stimulus measures.

China’s Ministry of Finance said in a statement on Monday that the proportion of new energy vehicles purchased each year as government vehicles should be no less than 30% of the total and 100% in urban areas to “support and promote” their use .

The CSI Auto Index rose 0.6%, but China’s Hong Kong-listed electric vehicle giants fell, with Xpeng down 5.8%.

Source: Terra

Rose

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