China shares climb on improved trade sentiment, while Hong Kong stocks weighed down by protests
- Shanghai Composite Index rises 1.3 per cent, while tech heavy ChiNext jumps 2.6 per cent
- In Hong Kong, shares of MTR sank, leaving it down 21 per cent from its July 18 high
China shares posted solid gains on Monday as sentiment improved on the trade war front and on expectations of more policy support ahead.
Hong Kong stocks, however, were weighed down as another weekend riot hit listed retailers and MTR, the owner and operator of the city’s subway system, which was vandalised. MTR closed down 3.1 per cent, at HK$44, which was 21 per cent off from its July 18 high.
The benchmark Shanghai Composite Index added 1.3 per cent to close at 2,924.1, bolstered by shares in the aviation, technology development, media and communications sectors.
The Nasdaq style ChiNext index shot up by 2.6 per cent to 1,652.3, with 29 companies hitting their daily 10 per cent limit.
The Shenzhen Component Index rose 2.2 per cent to 9,569.5.
Mainland investors are not worried about the relationship between the world’s two biggest economies because trade talks are still going on and making progress, associate director of Eddid Securities and Futures Ryan Chan said.
