Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

China’s stocks climb most in two weeks in rotation to large caps; Hong Kong shares narrow losses

China’s stocks climb most in two weeks in rotation to large caps; Hong Kong shares narrow losses

Economic recovery optimism buoys up the old-economy stocks, boosting materials and industrial companies. Property developers and casino operators decline in Hong Kong

China’s stocks rose the most in two weeks, rebounding from a weekly loss, on optimism that economic recovery in the Asian nation is gaining traction, boosting old-economy shares from commodity producers to industrial companies. Hong Kong’s benchmark trimmed losses.

The Shanghai Composite Index jumped 3.1 per cent, or 100.02 points, to 3,341.15 on Monday for the steepest gain since July 6.

The renewed momentum on Chinese stocks, which added US$1 trillion in market cap over the past three weeks in the world-beating rally, partially allayed concerns that the bull run was coming to an end. The benchmark tumbled 4.5 per cent on Thursday on angst that the run-up was too fast.

Rosy sentiment also buoyed up Hong Kong stocks, helping the Hang Seng Index to pare an intraday loss of as much as 1.3 per cent sparked by the resurgence of the coronavirus pandemic. The gauge closed 0.1 per cent lower at 25,057.99.

Monday’s mainland rally marked a shift in rotation to large-caps engaged in traditional industries from smaller companies that had led the gain on the broader market. The ChiNext index of growth stocks traded at the most expensive level relatively to the Shanghai Composite in six years this month on the price-to-earnings ratio basis, according to Bloomberg data.

“With the better growth recovery materialising, we see merit in adding sector leaders in the value camp that are exposed to cyclical growth upside,” said Wendy Liu, head of China strategy at UBS Group. “The big gap in valuation between growth and value, favourable liquidity and risk-on sentiment are also helping quality cyclicals.”

Gauges tracking material and industrial companies rallied at least 5.1 per cent, making them the best-performing sectors among all the industry groups. Aluminum Corp of China (Chalco) surged by the 10 per cent daily limit to 3.47 yuan and Anhui Conch Cement also rose by that much to 62.69 yuan. China Shipbuilding Industry jumped 10 per cent to 5.07 yuan.

Ping An Insurance advanced 6.1 per cent to 82.80 yuan and China Life Insurance climbed 10 per cent to 37.97 yuan after the regulator overseeing the industry raised the cap on how much insurers can invest in equities to 45 per cent of their assets from 30 per cent.

Cambricon Technologies, an artificial intelligence chip maker, jumped by 230 per cent from the initial public offering price to 212.40 yuan on its debut on Shanghai’s Start Market.

In Hong Kong, property developers and casino operators paced the decline after Hong Kong reported a record 108 new coronavirus cases on Sunday, prompting new social distancing orders from the government. Wharf Real Estate Investment declined 5.9 per cent to HK$30.50 and Galaxy Entertainment Group sank 3.9 per cent to HK$52.65.

Semiconductor Manufacturing International Corp slid 2.8 per cent to HK$28.20, extending a weekly loss of 30 per cent after China’s biggest chip maker started to trade in Shanghai’s new technology board, the Start Market, last Thursday.

Car Inc slumped 4.9 per cent to HK$2.93 before trading was suspended starting 1pm. SAIC Motor scrapped a plan to buy 613 million shares of the company through its Hong Kong unit, the Chinese carmaker said, citing disagreement on acquisition terms during an unspecified period.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
×