China’s blue-chip CSI300 Index closed up 1%, while the Shanghai Composite Index gained 0.7%.

In Hong Kong, the Hang Seng index climbed 0.4%.

Latest data shows China’s private fund sector expanded to a record ¥22.1 trillion in November, aided by strong flows into equities.

Meanwhile, more than a dozen newly launched Chinese funds with a focus on the Hong Kong market finished fundraising ahead of schedule, with many rushing to build positions, indicating an urge to buy the dip.

Market sentiment was also lifted by surges in Hainan stocks, after China last week started operation of the Hainan free trade port in a landmark move signalling Beijing’s commitment to opening-up.

Potential beneficiaries, including China Tourism Group Duty Free Corp, Hainan Airlines Holding Co Ltd, Hainan Airport Infrastructure Co Ltd and Hainan Strait Shipping Co Ltd, all shot up by their 10% daily limit.

“The market is expected to resume its upward trend, and is no longer hesitating,” Orient Securities said in a note to clients.

“Now could be a good time to add positions,” the brokerage said, recommending blue-chips and undervalued consumer players.

China’s chip makers and artificial intelligence stocks jumped today, while banks and industrial stocks fell.

Xiaomi Corp 1810 dropped 1.8% in Hong Kong and BOE Technology Group lost 1.2% in Shenzhen, underperforming the broader market, after US lawmakers urged the Pentagon to add them to a list of entities allegedly assisting the Chinese military.