The blue-chip CSI 300 Index rose 0.9% by midday, while the Shanghai Composite Index gained 0.8%. Hong Kong benchmark Hang Seng was down 0.6%.

Leading gains in the China market were information technology shares, which rose 5.4%, while the tech-focused STAR50 index surged 6.8%.

China’s semiconductor giant climbed over 15%.

The Beijing Stock Exchange 50 Index jumped 14% to a record high after the bourse said on Sunday it would help small- and medium-sized tech companies with training and access to finance so they can list.

Sentiment was also helped by comments from Chinese president Xi Jinping that supported science and technology in economic development.

In policy news, China cut its one- and five-year loan prime rates (LPRs) by 25 basis points each, as anticipated at the monthly fixing on Monday.

Financial stocks weighed the Hang Seng index, although property shares edged up.

More than 20 Chinese listed companies have announced plans to tap special central bank lending for share purchases, according to exchange filings, days after the People’s Bank of China (PBOC) kicked off the US$42 billion funding scheme.

China’s stocks are down roughly 10% from their Oct 8 peak after a turbulent few weeks, as investor caution erased some of late September’s massive gains made after Beijing’s stimulus measures.

“Investors in general agree that both China A-shares and Hong Kong stock markets have entered a phase of volatility… despite monetary policy easing, they are cautious ahead of the US elections and prefer to wait until the mid-November National People’s Congress session,” UBS analysts said in a note to investors.

The investment bank upgraded China’s Gross Domestic Product (GDP) growth forecasts for 2024 and 2025 to 4.8% and 4.5%, respectively, on Friday, after better-than-expected third-quarter GDP and recent policy announcements.