SHANGHAI: China and Hong Kong stocks edged up on Thursday, buoyed by investor optimism over potential stimulus measures that outweighed concerns about worsening trade tensions under a second Donald Trump presidency.

The blue-chip CSI300 Index rose 0.7% by the lunch break, while the Shanghai Composite Index gained 0.9%. Hong Kong benchmark Hang Seng was up 1.2%.

Investor focus has now shifted to the National People’s Congress Standing Committee meeting, which concludes on Friday. Any stimulus surprise from the meeting will likely help lift market sentiment in China stocks. “I think it’s very likely that we will see significantly more fiscal and monetary stimulus from Beijing, which could offset some of the trade headwinds,” said David Chao, global market strategist for Asia Pacific (ex-Japan) at Invesco.

Consumer-related stocks and property shares led gains in China, up 3.6% and 1.9%, respectively, as market participants expect more stimulus measures.

That helped offset some of the concerns about what a second Trump administration would mean for China’s economy. Hong Kong’s Hang Seng, which is more indicative of foreign investor sentiment, rose 1.2%, after falling 2.3% on Wednesday. The Hang Seng China Enterprises Index was up 1.5%. “I think investors will learn from the first Trump term,” said Wei Li, head of multi-asset investments for China at BNP Paribas. “Investors gained insights into how trade policies, tax reforms, and regulatory changes affect markets, allowing them to adjust their portfolios accordingly.”

A threat by Trump to impose 60% tariffs on US imports of Chinese goods poses major growth risks for the world’s second-largest economy. Mainland property developers traded in Hong Kong jumped 3.9%. Meanwhile, China’s export growth quickened in October, expanding 12.7% year-on-year by value, beating expectations, while imports shrank 2.3%, customs data showed on Thursday.

Exports have bolstered growth for China although tariff threats have cast doubts over the outlook.