China stocks edged up on Monday, as signs of easing Sino-U.S. tensions boosted investor sentiment. Tech shares led Hong Kong stocks up.
** China's blue-chip CSI300 Index climbed 0.4% by the lunch break, while the Shanghai Composite Index gained 0.5%. Hong Kong's benchmark Hang Seng Index was up 1.5%.
** James Wang, head of China strategy at UBS held a positive view towards China's equity market in 2024, projecting a 15% upside to MSCI China index, given current market's trough valuation, low investor positioning, and accelerating policy support.
** Wang prefers shares traded in Hong Kong over China's onshore shares and likes the internet sector the most.
** Also helping lift investor sentiment are some signs of tensions easing between the world's two largest economies.
** Last week's meeting between U.S. President Joe Biden and Chinese President Xi Jinping is a badly needed signal that the world needs to cooperate more, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.
** Foreign capital recorded a net inflow by midday Monday via northbound trading link, after the past two weeks had seen mostly outflows.
** China left benchmark lending rates unchanged at a monthly fixing on Monday, matching market expectations.
** A lower lending rate would help the troubled property sector, but will add pressure on banks as their net interest margins were already tight, analysts said.
** CSI Financials Index edged up 0.2%.
** Healthcare and tourism stocks were up 1.3% and 1.4%, respectively.
** In Hong Kong, tech stocks rallied 2.1%, with Tencent up nearly 4%.
** Shares of property developer Sunac China Holdings jumped as much as 11.8% after the company's offshore debt restructuring became effective.
(Reporting by Shanghai Newsroom; Editing by Mrigank Dhaniwala)