Updates to market close
SHANGHAI, March 28 (Reuters) – Hong Kong stocks rose on Tuesday, as investor fears of deeper banking stress were eased after failed Silicon Valley Bank secured a buyer. Chinese shares, however, were dragged lower by information technology companies.
** Hong Kong’s benchmark Hang Seng Index .HSI climbed 1.1%, and the China Enterprises Index .HSCE added 1.2%.
** China’s blue-chip CSI300 Index .CSI300 closed down 0.3%, while the Shanghai Composite Index .SSEC lost 0.2%.
** Regional U.S. lender First Citizens BancShares FCNCA.O scooped up the assets of failed peer Silicon Valley Bank on Monday, allaying investor fears of deeper banking sector stress and prompting a rally in bank shares, while global stocks also rose.
** Additionally, the Federal Reserve’s top regulatory official plans to tell Congress that regulators are committed to ensuring all U.S. bank deposits are safe.
** Financial shares traded in Hong Kong .HSNF rose 1.4%, with HSBC Holdings 0005.HK and AIA Group 1299.HK up 1.9% and 1.6%, respectively.
** Hong Kong tech stocks .HSTECH climbed 0.9%, with Tencent 0700.HK up 4.2%.
** China’s cyberspace regulator vowed on Tuesday to clamp down on malicious online comments that damage the reputation of businesses and entrepreneurs, amid an official drive to shore up the private sector and spur economic growth.
** China’s Premier Li Qiang told foreign business executives that the country will open up further.
** “Chinese leaders are attempting to shore up foreign investors’ confidence in China after the years of the closed-door policy during the pandemic and the trend of de-globalization,” said Ken Cheung, chief Asian FX strategist at Mizuho Bank.
** Premier Li also said China will maintain a certain level of economic expansion as it accelerates a transition towards higher quality growth, Chinese state media reported.
** Shares in computer .CSI930651, communications equipment .CSI931160 and media .CSI399971 slumped between 1.6% and 3%, after each of them jumped more than 30% this year amid a frenzy fuelled by the revolutionary computing technology ChatGPT.
** RongSheng Petrochemical Co Ltd 002493.SZ rose 10% after Saudi Aramco signed agreements to acquire 10% of the Chinese refining giant. CSI Energy Index .CSIEN was up 0.6%.
(Reporting by Shanghai Newsroom; Editing by Sonia Cheema and Eileen Soreng)
This article originally appeared on reuters.com