China shares rose on Monday as state-backed buying helped steady the market after recent losses, although continued weakness in technology stocks showed that confidence remains uneven.
The rebound was strongest among large companies and traditional sectors, suggesting that buyers are favouring areas seen as more likely to benefit from policy support. Smaller companies and technology shares remained under pressure, limiting the breadth of the recovery.
State support has reduced immediate concerns about further sharp declines and encouraged some investors to return to the market. However, the different performance across sectors indicates that the recovery is still selective rather than broad-based.
Large companies are often viewed as better placed to withstand uncertain conditions because they tend to have stronger balance sheets, more established businesses and greater access to funding.
Hong Kong shares also climbed as expectations of further support from China improved sentiment. The Hang Seng Index closed at 25,143.05 points, up 2.36 per cent during the session.
Alibaba advanced and helped lift the wider Hong Kong market. The company’s rise supported the major indices, although the broader picture remained mixed because not all technology shares participated in the recovery.
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