China, HK shares rally on tech rebound; activity data in focus

Business Recorder reported that mainland Chinese and Hong Kong equities climbed on Monday, with technology shares setting the pace as chipmakers advanced on robust earnings. Consumption-linked and liquor stocks slipped ahead of a batch of economic figures due later in the day. By the midday break, the Shanghai Composite had edged up to 3,960.19 points, a gain of 0.8%.

Within the tech complex, the CSI Semiconductor Index rose 4%, the STAR 50 gained 3%, and memory chipmaker CXMT jumped 9%. Shenzhen China Micro Semiconductor surged 15% to a one-month high after reporting first-half profit that nearly doubled. Liquor heavyweight Kweichow Moutai fell 4.2% after its profit declined, dragging the CSI Liquor Index down 3.3%.

Hong Kong's Hang Seng Index added 1.6% to 25,521.99, with the Hang Seng Tech Index up 2%. Attention now turns to July industrial output and retail sales, following a record contraction in bank loans reported last week as credit demand weakened. Oil prices edged higher as US-Iran peace talks stalled, keeping regional investors cautious.