China stocks rise: China stocks on Monday witnessed a slight increase while Hong Kong shares experienced a decline, as traders exercised caution ahead of the upcoming annual meeting of China's parliament, where policy signals are anticipated.

During the midday break, China's blue-chip CSI300 Index and the Shanghai Composite Index both rose by 0.2 per cent. 

In contrast, Hong Kong's benchmark Hang Seng slipped 0.1 per cent, and the Hang Seng China Enterprises Index lost 0.3 per cent.

Market expectations are focused on China's parliament, where moderate stimulus plans are projected to be unveiled to stabilise growth. 

However, there are concerns that the meeting may fall short of providing detailed strategies to address the country's structural imbalances.

Premier Li Qiang is anticipated to announce a growth target of around 5 per cent for 2024.

Elsewhere in Asia, markets saw some firmness, with the Nikkei reaching new highs. 

Investors are gearing up for a week marked by central bank events and significant data releases that will shape market expectations regarding potential interest rate adjustments.

In China, real estate developers witnessed a 3.5 per cent decline, particularly impacting property giant China Vanke Co, which saw a 4.7 per cent drop.

Reports regarding Vanke negotiating debt extension with lenders have been refuted by New China Asset.

China's central bank's decision to skip issuing loans via its pledged supplementary lending (PSL) facility in February raised eyebrows.

However, analysts anticipate increased lending in the coming months to support the struggling property sector.

Shares in energy and healthcare surged by 1.8 per cent, while communications equipment witnessed a notable 2.8 per cent increase.

China's cabinet recently approved a plan aimed at promoting large-scale equipment upgrades and consumer goods sales, according to state media reports.

In Hong Kong, tech giants and mainland property developers saw declines of 0.4 per cent and 2.6 per cent respectively.

Overseas, investors are closely watching Federal Reserve Chair Jerome Powell's testimony before lawmakers scheduled for Wednesday and Thursday.

(With Reuters Inputs)