Hong Kong and mainland ‍stocks moved between gains and losses before ending slightly higher on Thursday, as advances in aerospace and energy shares helped offset declines in non-ferrous metals after gold fell amid easing geopolitical worries.

The benchmark Hang Seng Index was up 44 points, or 0.17 percent, at 26,629 while the China enterprises index was down by more than eight points, or 0.09 percent, at 9,114 and the tech index was up 16 points, or 0.28 percent, at 5,762.

On the mainland, the benchmark Shanghai Composite Index was up five points, or 0.14 percent, at 4,122 while the Shenzhen Components Index was up almost 72 points, or 0.5 percent, at 14,327. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was up 33 points, or 1.01 percent, at 3,328.

The Star Composite Index, which reflects the performance of stocks on China's sci-tech innovation board, closed 0.14 percent higher at 1,865 while the Star 50 Index, which tracks the largest stocks that meet certain liquidity requirements, closed 0.41 percent higher at 1,541.

The gains came soon after US President Donald Trump on Wednesday abruptly stepped back from threats to impose tariffs as leverage to seize Greenland, ruled out the use of force, and suggested that a deal was in sight ‍to end a dispute over the Danish territory ⁠that risked the deepest rupture in transatlantic relations in decades.

Sub-indexes tracking the aerospace and energy sectors jumped 3.41 percent and 2.33 percent, respectively.

Non-ferrous metal shares ‌fell, with a sub-index tracking the sector losing 0.78 percent. Western Region Gold plunged 4 percent.

Stock consolidation came ‍after Shanghai and Shenzhen stock exchanges each ‌took regulatory measures over the ‌past ‌week against hundreds of abnormal trading practices, such as price pumping and false orders. The bourses also launched probes into several listed companies over allegedly misleading statements.

William Bratton, head of cash equity research for APAC at BNP Paribas Exane, said the firm remains positive on Chinese equities in 2026, favouring materials, ‌industrials and technology over consumer sectors in line ‍with earnings and economic data.

Britain and China will aim to revive a "golden era" business dialogue when Prime Minister Keir Starmer visits Beijing next week, sources said, with top company executives from both sides invited to participate. (Reuters/Xinhua)