China stocks rise on signs of steadying economy, Hong Kong dips

China stocks rose on Monday on signs of a stabilizing domestic economy and increasing expectations of government stimulus to aid growth, while Hong Kong shares dipped. The CSI300 index rose 0.5% to 4,176.50 by the end of the morning session, while the Shanghai Composite Index gained 0.4% to 3,088.59.

In Hong Kong, the Hang Seng index dropped 0.4% to 28,942.57, while the Hong Kong China Enterprises Index lost 0.2% to 11,401.63. China is confident of maintaining steady industrial growth this year despite big pressures facing the sector, Minister of Industry and Information Technology Miao Wei said on Monday.

His remarks came after China's industrial output topped expectations in December by growing 6.9% from a year earlier, the strongest pace in nine months. Investors also expect more government stimulus ahead after China's economic growth cooled to a near 30-year low of 6.1% in 2019 amid a bruising trade war with the United States.

Among shares, hotel operators and tourism firms slumped following news that an outbreak of a new coronavirus in China was spreading to other cities, raising concerns around its containment and clouding travel plans of millions of Chinese for Lunar New Year holiday. BTG Hotels Group Co and Shanghai Jin Jiang International Hotels Development Co tumbled over 7%, while tourism company Songcheng Performance Development Co slumped over 8%.

Shares of drugmakers and facial mask producers such as Jiangsu Sihuan Bioengineering Co and Shandong Lukang Pharmaceutical Co jumped.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)