China shares rise led by auto sector
* HSI -0.1 pct, H-shares -0.3 pct, CSI300 +0.4 pct
* China auto sector rises after Xi calls for 'green' cars
* Investors like Premier Li's remark on policy fine-tuning
* PetroChina pulls down Hong Kong indexes on profit-taking
Published 26/05/2014 | 07:25
Investors in the Chinese onshore markets were also cheered by Premier Li Keqiang's remarks, reported by state media late Friday, that timely policy fine-tuning is needed to underpin growth in the world's second-largest economy.
Hong Kong shares were flat after a choppy morning session, dragged down by a weaker energy sector.
The CSI300 of the leading Shanghai and Shenzhen A-share listings and the Shanghai Composite Index each gained 0.4pc. Shanghai's benchmark index ended at 2,041.94 points.
"Premier Li's comment may help the market sentiment to stabilise," said Castor Pang, head of research at Core Pacific-Yamaichi in Hong Kong.
Pang added that the Hong Kong markets may rise in the near term depending on how good a load of coming U.S. economic data turns out. So far, Hong Kong's benchmark index has climbed 3.7pc in May.
Warren Buffett-backed Chinese carmaker BYD Co Ltd was in focus on Monday after the company launched a new share issue seeking to raise up to $550m.
Its Hong Kong shares tumbled almost 9pc when the market opened but recovered most of the losses and ended the morning session down 1.9pc, helped by Xi's remarks on green cars. Its Shenzhen shares soared 8.8pc, the top gainer of CSI300.
Leading H-share gainers were Great Wall Motor, which climbed 3pc and Guangzhou Automobile Group , up 1.7pc.
But the advances in Hong Kong were outweighed by weakness in energy counters. PetroChina, the biggest drag on both indexes, lost 1.1pc as investors took profit after the stock hit six-month highs last week.
The aviation sector was another outperformer in China, with AVIC Aircraft up 4.4pc in Shenzhen following Xi's comment that China should make its own large aircraft.