China stocks rise after credit data; Hong Kong slips on Sino-US tensions
Business
Tech giants listed in Hong Kong dropped 0.5%.
SHANGHAI (Web Desk) - China stocks rose on Monday as a strong rebound in January credit demand lifted the market’s sentiment, while Hong Kong shares dropped on geopolitical tensions between Beijing and Washington.
China’s blue-chip CSI300 Index added 0.6% by the end of the morning session, while the Shanghai Composite Index was up 0.5%.
Hong Kong’s benchmark Hang Seng Index lost 0.5%, and the Hang Seng China Enterprises Index slipped 0.1%.
Other Asian shares slid and the dollar rose as investors hunkered down for US inflation data that could jolt the outlook for interest rates globally.
New bank loans in China jumped more than expected to a record 4.9 trillion yuan ($720.21 billion) in January, as the central bank looks to kickstart a recovery in the world’s second-biggest economy after the lifting of harsh pandemic controls.
“The strong credit data let the market see the hope that social finance gradually bottomed out and the economy will recover,” analysts at China Merchants Securities said, expecting the A-share market will be boosted in the short term.
Shares in consumer-related companies led the gains, with tourism firms rising 2.5% and liquor makers jumping 4.4%.
However, Nomura analysts cautioned that household loans still remained subdued amid contractions in the sales of new homes and autos, which could potentially weaken future credit expansion.
The Joe Biden administration plans to outright ban investments in some Chinese technology companies and increase scrutiny of others, sources told Reuters.
Meanwhile, an air of geopolitical mystery was added by news the U.S Air Force had shot down a flying object near the Canadian border, the fourth object downed this month.
Officials declined to say whether it resembled the large white Chinese balloon that was shot down earlier this month.
Tech giants listed in Hong Kong dropped 0.5%.
