China Stocks Surge Post-Lunar New Year Amid Tech Hopes

China's stock market exhibited stability on Friday as onshore investors resumed trading post-Lunar New Year, leading to a positive week overall. Optimism surrounds the forthcoming National People's Congress, anticipated to introduce measures favoring technology and innovation. Consequently, Hong Kong shares saw an uptick.

Despite a slight dip of 0.3% in the CSI300 Index, the Shanghai Composite managed a 0.4% rise. In Hong Kong, the Hang Seng Index rose by 1%, while the CSI300 ended the abbreviated week 1.1% up, with the Hang Seng climbing 0.8%.

Positive sentiment is buoyed by state-linked funds easing off on selling and anticipation of policy support for technology from the Congress, as per Morgan Stanley analysts. Meanwhile, a downward trend in Hong Kong-listed tech firms shifted some investor focus to consumer stocks with traditionally low valuations.