China and Hong Kong Stocks See Gains Amid Non-Ferrous Metal Surge

China and Hong Kong stock markets experienced gains on Monday, driven by non-ferrous metal and financial shares. The blue-chip CSI300 Index rose 0.3%, while technology stocks dipped. Analysts foresee continued AI and technology growth, despite investor concerns over capital expenditure and market valuations.

China and Hong Kong stocks rose on Monday, led by non-ferrous metal and financial shares. The blue-chip CSI300 Index saw a 0.3% rise, while the Shanghai Composite Index edged up 0.1%, and the Hong Kong Hang Seng was also up 0.1%.

Non-ferrous metal shares surged by 4.6% onshore, driven by gold hitting a record high above $5,000 an ounce due to rising geopolitical tensions. Offshore, material stocks gained 4.1%. However, technology stocks in Hong Kong fell by 1.3%, and onshore semiconductor shares decreased by 2%.

Analysts at AVIC Securities believe AI and technology will remain key growth areas in 2026, despite concerns over increased capital expenditure and high valuations. Regulatory scrutiny continues, with significant fines imposed and investigations launched into abnormal trading practices, which may indicate a desire to control market growth.