BEIJING: China stocks rose early on Monday as investors brushed aside the potential impact on liquidity from a batch of new listings, heartened by recent government steps to stimulate the economy.
Hong Kong shares were almost flat, with investors increasingly relaxed about the prospect of higher U.S. interest rates next month and looking for fresh cues on direction.
China’s blue-chip CSI300 index rose 0.5 percent, to 3,791.74 points by the lunch break, while the Shanghai Composite Index gained 0.4 percent, to 3,644.70 points.
Ten Chinese companies published prospectus filings on Monday indicating they would raise a combined 3 billion yuan ($469.70 million) via share sales, as China resumes initial public offerings, which were suspended during the summer market rout.
But sentiment was calm as the new listings had been expected for some time, while the total amount of fundraising appears relatively small.
Instead, investors drew optimism from fresh government measures to support consumption and innovation as Beijing looks for new drivers of economic growth.
Zhou Jintao, chief economist of China Securities Co Ltd, predicted that China’s economy will likely hit bottom in the first quarter next week, meaning even cyclical stocks are now worth investing in.
Most sectors rose on Monday, with tech-heavy ChiNext leading gains on rising interest in innovative start-ups.
Infrastructure stocks were up, partly aided by news that China’s state planner approved an 80.51 billion yuan ($12.60 billion) high-speed rail project.
In Hong Kong, the Hang Seng index was unchanged at 22,748.63 points, while the Hong Kong China Enterprises Index lost 0.3 percent, to 10,271.65.
