Beautiful Virgin Islands

Tuesday, Jun 24, 2025

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.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
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
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
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
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
×