China, HK stocks gain as AI enthusiasm broadens to farming, biotech sectors

China and Hong Kong stocks rose on Monday as signs emerged that investor enthusiasm for artificial intelligence was broadening to other sectors, including agriculture and biotechnology.

** The blue-chip CSI300 Index SZSE:399300 gained 0.3% by the midday break, while the Shanghai Composite Index SSE:000001 edged 0.1% higher.

** In Hong Kong, benchmark index Hang Seng HSI:HSI climbed 0.7%.

** Market sentiment received a boost from 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 Royald Fund Management Co said in a note. "We remain optimistic on Chinese equities."

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

** Energy SSE:000908, chip-making (.STARCHIP) and agriculture (.CSI930662) stocks led the gains in China stocks.

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

** 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.