Hong Kong Market climbs to 6-month high

Hong Kong share market finished session at six-month high on Wednesday, 11 January 2023, as risk sentiments underpinned amid hopes that China's economic rebound is on track as the government rolls out a slew of stimulus measures to spur recovery.

At closing bell, the benchmark Hang Seng Index added 104.59 points, or 0.49%, to 21,436.05, the highest level since July 8. The Hang Seng China Enterprises Index was up 47.29 points, or 0.65%, to 7,310.92.

China's monetary policy is expected to remain steady and accommodative for widening credit this year after corporate loans picked up last month following easing regulation for financial institutions.

As the economy recovers from the Covid-19 pandemic, credit indicators will further pick up, and new loans are predicted to reach more than CNY2.2 trillion (USD324.8 billion) in 2023, up by about 10 percent. Last month, China added CNY1.4 trillion in new loans, up CNY190 billion (USD2.8 billion) from November and an increase of CNY266.5 billion (USD39.3 billion) from a year ago, according to data released by the People's Bank of China yesterday. Some CNY1.26 trillion of the total was corporate loans, up by CNY601.7 billion from a year earlier.

In another sign of Beijing's softening stance towards big tech platforms, the municipal government of Hangzhou, where Alibaba is based, signed an agreement on Tuesday to foster deeper strategic cooperation with the e-commerce giant. That followed a comment at the weekend by the head of the banking regulator that curbs on the industry are almost over.

There are signs that coronavirus infections may have already peaked after China called time on its rigid pandemic controls. Travel between cities and commuter numbers in big metropolises like Beijing and Shanghai are picking up

Among blue chips, Alibaba Group fell 0.6% to HK$109.70 while JD.com lost 0.1% to HK$249.80 and Meituan Alibaba Group advanced 3.1% to HK$112.90 and Tencent Holdings gained 3.2% to HK$373.80. Search engine operator Baidu climbed 2.5% to HK$133.80. Coal producer China Shenhua jumped 4.7% to HK$24.35, and Ping An Insurance added 3.5% to HK$58.75.

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