China stocks close up, led by energy and financials; HK shares down

SHANGHAI, – China stocks ended slightly higher on Monday, buoyed by gains in energy and financial shares, while smaller stocks weighed on overall performance. Hong Kong shares were down.

For 2024, onshore shares are set to log gains for the first time after three years of losses as multiple policy stimulus measures since September lifted market sentiment.

** China’s blue-chip CSI300 Index closed up 0.5%, while the Shanghai Composite Index was up 0.2%. Hong Kong’s benchmark Hang Seng was down 0.2%.

** Energy shares traded onshore were up 1.3%, leading gains in the onshore market, while financial stocks were up 1.2%.

** Small-cap stocks traded on the Beijing Stock Exchange slumped 4.4%, dragging on onshore performance.

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

** “Policy expectations are anticipated to heat up again after the Lunar New Year,” he said.

** Trading volumes have declined since an October spike that was triggered by a slew of stimulus measures.

** China’s finance ministry said in a statement on Monday that the proportion of new energy vehicles procured each year as government vehicles should not be less than 30% of the total and 100% in urban areas to “to support and promote” their use. ** The CSI Auto Index added 0.6% but Chinese electric vehicle giants traded in Hong Kong dropped, with Xpeng down 5.8%. ** China’s central bank governor was quoted as saying by state media on Sunday that the weighted average reserve requirement ratio for banks stands at around 6.6% after the RRR cut, and this level still leaves “some room” when compared to the central banks of major global economies.

This article was generated from an automated news agency feed without modifications to text.