At the midday break, the Shanghai Composite index was up 0.8 per cent at 3,559.86, while China’s blue-chip CSI300 index was up 1.1 per cent.
The smaller Shenzhen index was up 0.74 per cent, the start-up board ChiNext Composite index was higher by 1.14 per cent and Shanghai’s tech-focused STAR50 index was up 0.6 per cent.
However, gains were capped by continued worries over a pickup in coronavirus infections in northern China and tensions between Beijing and Washington.
China reported a drop in the number of new Covid-19 cases in the past 24 hours amid a flurry of new measures in Hebei province surrounding Beijing, ranging from home quarantines starting on Tuesday in one county and a lockdown of the provincial capital.
“Despite high growth expectations in China, investors could not shake off the coronavirus resurgences around the world,” analysts at DBS said in a note.
Chinese H-shares listed in Hong Kong rose 0.54 per cent to 11,119.24, while the Hang Seng Index was up 0.46 per cent at 28,037.51, not far from a high of 28,176.65 hit a day earlier, the loftiest level since Jan. 22, 2020.
Analysts said gains in Hong Kong stocks were supported by rising capital flows from mainland. Official data showed that investors on Monday bought the most Hong Kong stocks through the stock connect scheme since the programme was launched.
AsUS investors dump shares in Chinese companies blacklisted by outgoing President Donald Trump, bargain hunters in China are taking the opposite side of that trade, wagering that a Joe Biden presidency will reverse the investment ban.
Separately, Wall Street firms in Hong Kong including Goldman Sachs and JPMorgan on Monday moved to reduce exposure to Chinese telecom companies named in aUS ban on investments in companies Washington considers linked to China’s military.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.45 per cent while Japan’s Nikkei index was up 0.06 per cent.