Mainland China and Hong Kong stocks edge higher as sentiment improves

Apr 25, 202405:03 UTC

Mainland China and Hong Kong stocks edged higher on Thursday, as market sentiment improved after strategists from global investment houses upgraded their views on Chinese shares.

** HSBC said on Thursday that its funds have built significant exposure to mainland China equities.

"Global emerging market (GEM) funds have rolled back on their underweight on mainland China and turned neutral, while Asia's funds exposure on the market is now at a seven-month high," strategists at HSBC said in a note.

** Earlier this week, UBS analysts forecast foreign investors would gradually return to China's market via the Stock Connect as market sentiment and the macro environment improve. The bank's strategists upgraded MSCI China equities to "overweight".

** At the midday break, the Shanghai Composite index 000001 was up 0.17% at 3,049.90 points.

** China's blue-chip CSI300 index 3399300 was up 0.24%, with its financial sector sub-index 3399914 higher by 0.59%, the consumer staples sector 0000912 down 0.2%, the real estate index 000952 up 1.07% and the healthcare sub-index 399913 up 1%.

** Chinese H-shares listed in Hong Kong HSCEI rose 0.47% to 6,129.01, while the Hang Seng Index HSI was up 0.55% at 17,295.93.

** The smaller Shenzhen index 399106 was up 0.45%, the start-up board ChiNext Composite index 3399006 was higher by 0.33% and Shanghai's tech-focused STAR50 index (.STAR50) was down 0.21%.

** Around the region, MSCI's Asia ex-Japan stock index (.MIAPJ0000PUS) was weaker by 0.47% while Japan's Nikkei index NI225 was down 2.01%.

** The yuan USDCNY was quoted at 7.2469 per U.S. dollar, 0.01% weaker than the previous close of 7.2461.

** The largest percentage gainers in the main Shanghai Composite index were Ninebot Ltd (689009.SS), up 16.94%, followed by Arctech Solar Holding Co Ltd 688408, gaining 11.81%, and Jiangsu Yabang Dyestuff Co Ltd 6603188, up by 10.21%.

** The largest percentage losers in the Shanghai index were XiAn Qujiang Cultural Tourism Co Ltd 6600706, down 10%, followed by Zhejiang Biyi Electric Appliance Co Ltd 6603215, losing 10%, and Zhejiang Yingfeng Technology Co Ltd 6605055, down by 9.928%.