China stocks rose more than 1 percent on Thursday as bargain hunting in technology stocks offset weakness in financial shares. The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 1.1 percent to 3,124.20 points, while the Shanghai Composite Index gained 1.2 percent to 2,904.83.
China's technology heavy growth board ChiNext closed up 5.3 percent, reversing consecutive falls in the past two sessions.
Major indexes flitted between negative and positive territory all morning, but the CSI300 index was up 0.6 percent at 3,109.88 points by the midday break, while the Shanghai Composite Index gained 0.6 percent to 2,886.40.
ChiNext, China's technology-heavy growth board, rose 3 percent, following losses in the previous two sessions.
Analysts attributed the moves to investors rotating capital out of overbought sectors such finance, which outperformed on Wednesday.
"Pudong Development Bank and Minsheng Bank had very obvious gains yesterday, but ChiNext and growth stocks underperformed," said Liu Jingde, analysts at Cinda Securities in Beijing.
"Today, you're just seeing capital run out of these overbought large caps back into small caps and media or internet stocks where investors see better opportunities."
The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 134.75.
A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.
The northbound quota for the Hong Kong-Shanghai Stock Connect, currently set at 13 billion yuan ($2 billion), saw net inflows of 1.04 billion yuan.
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