The Hang Seng Index added 0.3 per cent to 25,192.50 at 11.30am local time, paring the weekly loss to 0.3 per cent. The Hang Seng Tech Index rose 1.7 per cent. On the mainland, the CSI 300 Index added 1.2 per cent and the Shanghai Composite Index advanced 0.7 per cent.
Chipmaker SMIC advanced 6.3 per cent to HK$54.95 after Nvidia reportedly sought a halt to the production of China-focused H20 AI chips. Electric-vehicle carmaker BYD strengthened 1.1 per cent to HK$112.60, and peer Li Auto gained 0.8 per cent to HK$91.75.
Pharmaceutical producer Wuxi AppTech slumped 1.9 per cent to HK$100.50 and insurance firm AIA group slid 2.3 per cent to HK$71.75. Digital health services provider JD Health International declined 2.2 per cent to HK$63.05,and logistics provider ZTO Express lost 0.8 per cent to HK$148.60.
JPMorgan said in a recent report that it expected the momentum in mainland Chinese equities to persist, as leverage and valuations remained at moderate levels. The US investment bank estimated that potential asset rotation could inject as much as 14 trillion yuan (US$1.9 trillion) of liquidity into the market, equal to about 16 per cent of its free-float capitalisation.
Chinese brokerage stocks rose as they are likely to benefit from the asset rotation. CSC Financial added 0.3 per cent to HK$14.78, Everbright Securities gained 2.2 per cent to HK$11.53 and China Galaxy Securities inched up 0.2 per cent to HK$12.30.
