China stocks flat as money rotates out of tech, into farming, energy sectors; Hong Kong up

China stocks ended flat on Monday as money rotated into energy, agriculture and banking stocks, away from the crowded tech sector, while Hong Kong shares rose.

** The blue-chip CSI300 Index SZSE:399300 and the Shanghai Composite Index SSE:000001 were little changed at market close.

** Hong Kong's benchmark Hang Seng Index HSI:HSI climbed 1.1%.

** The market was aided by fresh regulatory measures aimed at supporting listed companies.

** The China Securities Regulatory Commission on Friday proposed rule changes designed to make it easier for listed firms to refinance.

** Separately, new share trading rules took effect on Monday, introducing market-making mechanisms to Shenzhen's ChinNext market and improving arrangements for block trades.

** "Liquidity remains ample, creating conditions for fresh capital inflows," Minsheng Royal Fund Management Co said in a note. "We remain optimistic on Chinese equities."

** Orient Securities said that risk appetite, previously highly concentrated in AI, is broadening into certain cyclical sectors as well as high-end manufacturing.

** Energy SSE:000908, agriculture (.CSI930662) and consumer staples SSE:000932 stocks were top gainers on Monday.

** Cyclical sectors including coal (.CSI399998), banking (.CSI399986) and materials SSE:000909 also advanced.

** But some previously hotly-chased sectors, including robotics (.CSIH30590), satellite (.CSI931585) and battery (.CSI931719) corrected sharply. Shanghai's tech-focused STAR Market (.STAR100) also retreated.

** In Hong Kong, investors cheered signs that the city's private sector gained momentum, as the S&P Global Hong Kong PMI increased to 52 in June from 50.4 in May.

** Biotech (.HSIDI), Internet (.HSIII) and tech HSI:HSTECH shares led the gains.