Financials lift China stocks; Hong Kong shares slip on tech drag

China stocks rose on Tuesday led by financial stocks, as investors continued investing in shares of state-owned enterprises, while trade data fell short of expectations. The meeting is also intended for introducing Exchange-Traded Funds (ETFs) of Central SOE themes. ** In Hong Kong, tech stocks declined 1.2%, with Tencent and Meituan down 1.9% and 1.1%, respectively.

China stocks rose on Tuesday led by financial stocks, as investors continued investing in shares of state-owned enterprises, while trade data fell short of expectations. Hong Kong shares were down dragged by technology stocks. ** China's blue-chip CSI300 Index climbed 0.5% by the lunch break, while the Shanghai Composite Index gained 0.4%.

** Hong Kong's benchmark Hang Seng Index was down 0.5%, while the China Enterprises Index slipped 0.6%. ** China's imports contracted sharply in April, while exports grew at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs and heaping pressure on an economy already struggling in the face of cooling global growth.

** UBS analysts wrote in a note that imports data fell more than expected, indicating domestic demand remains weak despite policy support. ** "The sequential decline in exports is in line with historical patterns for this year's earlier-than-normal Lunar New Year," said analysts at Goldman Sachs.

** Financial stocks, however, bucked the trend, with securities shares up 4.6%. Most banks and brokerages in the country are state-owned enterprises. ** China International Capital Corp Ltd, Everbright Securities Co Ltd, and China Galaxy Securities Co Ltd jumped 10%, hitting the daily upper circuit limit.

** The momentum may be reinforced by a roadshow announcement from Shanghai Stock Exchange (SSE), analysts said. ** SSE Roadshow Center's website indicates SSE will be hosting a meeting on discovering investment value and promoting the revaluation of of Central State-owned enterprises(SOEs) on Thursday. The meeting is also intended for introducing Exchange-Traded Funds (ETFs) of Central SOE themes.

** In Hong Kong, tech stocks declined 1.2%, with Tencent and Meituan down 1.9% and 1.1%, respectively. ** Meanwhile, healthcare shares slumped 3.2%, with Beigene Ltd and Angelalign Technology Inc down 2.8% and 6.1%, respectively.