China, Hong Kong stocks gain on signs of money inflows, Hainan free trade port excitement

SHANGHAI, - China and Hong Kong ‍stocks rose on Monday, buoyed by signs of continued money inflows, and the creation of a free trade port in tropical island Hainan.

** China's blue-chip CSI300 Index rose 0.8% by the lunch break, while the Shanghai Composite Index gained 0.6%. In Hong Kong, the Hang Seng index ⁠climbed 0.2%.

** Latest data shows ⁠China's private fund sector expanded to a record 22.1 trillion yuan ⁠in November, aided by strong flows into equities.

** Meanwhile, more than a dozen newly launched Chinese funds with ‍a ‌focus on the Hong Kong market finished fundraising ahead of schedule, with many rushing ​to build positions, indicating an urge to buy the dip.

** Market sentiment was also lifted by surges in Hainan stocks, after China last week started operation of the Hainan Free Trade Port in a landmark move signalling Beijing's commitment to opening-up.

** Potential beneficiaries, including China Tourism Group Duty Free Corp, Hainan Airlines Holding Co Ltd , Hainan ​Airport ⁠Infrastructure Co Ltd and Hainan Strait Shipping Co Ltd, all shot up by their 10% daily ⁠limit.

** "The market is expected to resume its upward trend, and is ‌no longer hesitating," Orient Securities said in a note to clients.

** "Now could be a good time to add positions," the brokerage ​said, recommending blue-chips and undervalued consumer players.

** China's chip makers and artificial intelligence stocks jumped on Monday, while banks and industrial stocks ‍fell.

** Xiaomi Corp dropped ‍2.1% in ⁠Hong Kong and BOE Technology Group lost 0.7% in Shenzhen, underperforming the broader market, after U.S. lawmakers urged the Pentagon to add them to a list of entities allegedly assisting the Chinese military.

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