China Stocks Rise Amid Energy and Financial Gains, Hong Kong Falters

China stocks finished slightly higher on Monday, driven by energy and financial shares, while smaller stocks held back overall performance. Onshore shares are set for gains in 2024 after years of losses due to policy stimulus measures. However, Hong Kong shares dropped, with external disturbances likely to affect market sentiment.

China's stock market concluded Monday with a slight uptick, thanks to strong performances in the energy and financial sectors. These gains helped offset the drag caused by smaller stocks, though Hong Kong's shares suffered a downturn.

Looking ahead to 2024, onshore shares are anticipated to break a losing streak, aided by multiple policy stimulus actions introduced since September. This optimism saw the CSI300 Index close up 0.5%, and the Shanghai Composite finished 0.2% higher, though Hong Kong's Hang Seng Index fell by 0.2%.

Onshore energy stocks led the advancement with a 1.3% rise, while financial shares climbed by 1.2%. The Beijing Stock Exchange's small-cap stocks, however, fell 4.4%, hindering overall onshore performance. Despite expectations of an active market in January, a strategist at Citic Securities warned of potential disruptions that could dampen sentiment later. The conversation around policy is expected to revive after the Lunar New Year.

(With inputs from agencies.)