At the close, the Shanghai Composite index was up 1.2% to 3,310.21. The blue-chip CSI300 index closed up 1.4%, with its financial sector sub-index higher by 1.8%, and the consumer staples sector up 1%.

Hong Kong’s Hang Seng index closed 0.3% higher at 20,567.52 and trading volume was sharply lower.

Strong sales at automaker BYD sent its shares 4.4% higher in Hong Kong and lifted the sector along with renewables and other tariff-exposed industries.

Travel firm Trip.com was the top gainer, with a 4.7% rise, while profit-taking dragged property shares down 0.8%

Betting markets’ perception of Donald Trump’s chances of winning the US presidency slipped after a poll showed Kamala Harris taking a surprise lead in Iowa.

Hong Kong shares in particular are likely to be sensitive to the US election outcome and the risk a Trump victory leads to new tariffs. The one-week implied volatility for the dollar/yuan pair hit a record high on Monday.

Goldman Sachs prime brokerage said Chinese equities collectively saw record net selling from hedge funds in October as fast-money funds cashed out of August gains.

About 66.5 billion shares were traded on the Shanghai exchange, more than the 30-day moving average. About 2.46 billion Hang Seng index shares were traded, roughly half of the market’s 30-day moving average.

The standing committee of China’s National People’s Congress meets through Nov 4-8 and is expected to approve spending and debt refinancing plans aimed at shoring up local governments and supporting economic growth.

Federal Reserve policymakers look all but certain to reduce short-term borrowing costs by 25 basis points at their policy announcement on Nov 7.