China, Hong Kong stocks edge up as metals, financials offset tech drag

China and Hong Kong stocks edged up on Monday, as gains in non-ferrous metal and financial shares offset losses in technology names.

China's blue-chip CSI300 Index .CSI300 climbed 0.3% by the lunch break, while the Shanghai Composite Index .SSEC gained 0.1%. Hong Kong benchmark Hang Seng .HSI was up 0.1%.

Leading gains onshore are non-ferrous metal shares .CSISNMIM, up 4.6%, while materials stocks traded offshore .HSCIM jumped 4.1%, as gold surged to a record high above $5,000 an ounce, extending a historic rally as investors piled into the safe-haven asset amid rising geopolitical uncertainties.

Tech majors traded in Hong Kong .HSTECH were down 1.3%, while semiconductor shares listed onshore .CSIH30184 fell 2%.

Analysts at AVIC Securities said they expected generalized AI and technology to remain the key growth theme in 2026, but flagged investor concerns that rising capital expenditure could pressure cash flows and that valuations may be nearing bubble territory.

They added that market sentiment may stabilise and improve, and under counter-cyclical regulatory support could shift toward a "slow bull" typical of an economy in transition, with indexes seen grinding higher.

Regulatory scrutiny stayed in focus. China's securities watchdog on Friday fined an individual investor about 1 billion yuan ($143.77 million) for manipulating shares, and the Shanghai and Shenzhen exchanges this month moved against hundreds of abnormal trading practices and opened probes into several firms over allegedly misleading statements. Analysts said the steps signal an intent to temper the pace of market gains.

Financial shares also firmed, with insurance .CSI399809 and bank .CSI399986 stocks up 2.8% and 0.6%, respectively.

($1 = 6.9554 Chinese yuan renminbi)

-Shanghai Newsroom/Reuters