China, HK stocks rise on signs of success in war against disorderly competition

Sep 29, 2025, 11:57 GMT+7
Reuters - China and Hong Kong stocks rose on Monday, as shares of carmakers and solar energy firms jumped on signs that Beijing's crackdown on price wars is starting to bear fruit.
** Sentiment was also aided by China central bank's pledge to step up policy support for growth.
** China's bluechip CSI300 Index rose 0.5% by the lunch break, while the Shanghai Composite Indexgained 0.1%.
** In Hong Kong, benchmark index Hang Sengjumped 1.4%.
** China's industrial profits jumped 20.4% in August from a year earlier, reversing a 1.5% year-on-year decline in July, showed data released on Saturday.
** "August industrial profits surge is mostly due to the base effect, but signs of early success of the 'anti-involution' campaign are emerging," Hong Hao, chief investment officer of Lotus Asset Management said, referring to government crackdown against over-production.
** "Profit recovery will likely continue in the coming months, auguring well for further market gains."
** Goldman Sachs said that "the notable improvement of profitability in raw material sectors such as steel hints at the government's anti-involution policies at work."
** Meanwhile, expectations of fresh stimulus rose after the People's Bank of China said on Friday it will strengthen coordination between monetary and fiscal policies to support economic growth.
** Goldman expects China to cut both interest rates and banks' required reserve ratios in the fourth quarter.
** Sectors that suffered heavily from price wars, including new energy vehiclesand solar energy, jumped.
** The Star Marketalso rose sharply, after news that Moore Threads Technology, an artificial intelligence chipmaker that competes with Nvidia Corp, got regulatory approval to list on the tech-focused board in Shanghai.
** In Hong Kong, raw material,consumer and tech are among the best performing indexes.

Sumber : Reuters