Hong Kong stocks rise as trade agreement soothes fears on rare earths, chips



Hong Kong stocks rose on Monday as US-China trade tensions were soothed after Beijing said it would suspend new export controls on rare earth metals and terminate investigations into US firms in the semiconductor supply chain.

The Hang Seng Index advanced 0.4 per cent to 26,001.13 as of 9.50am local time. The Hang Seng Tech Index fell 0.1 per cent. On the mainland, the CSI 300 Index fell 0.4 per cent and the Shanghai Composite Index lost 0.1 per cent.

Leading the gainers, online travel-booking agency Trip.com Group rose 1.5 per cent to HK$551.50 and e-commerce firm JD.com added 0.9 per cent to HK$128.80. Smartphone and car maker Xiaomi rose 2.5 per cent to HK$44.28, and sportswear producer Li Ning gained 1.1 per cent to HK$17.06. Oil and gas company PetroChina surged 2.9 per cent to HK$8.25 and peer CNOOC advanced 2.7 per cent to HK$20.32.

Among losers, jeweller Chow Tai Fook Jewellery Group slumped 6.6 per cent to HK$14.21 and gold producer Zijin Mining lost 2.5 per cent to HK$31.42. Chinese home-grown chipmaker Semiconductor Manufacturing International slipped 1.6 per cent to HK$74.

The White House said over the weekend that China would suspend additional export controls on rare earths and scrap investigations into US chip firms under a new trade framework agreed by US President Trump and his Chinese counterpart Xi Jinping, with Washington pausing some so-called reciprocal tariffs in return.

Two stocks debuted. Mininglamp Technology Group jumped 111 per cent to HK$297 in Hong Kong, while Dynamiker Biotechnology Tianjin soared 472 per cent to 97.80 yuan in Beijing.

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