Hong Kong Market closes at 6-month peak

Hong Kong share market finished session higher on Monday, 09 January 2023, as full reopening of the world's second-biggest economy and expectations of slower U.S. rate hikes bolstered risk confidence.

At closing bell, the benchmark Hang Seng Index advanced 396.70 points, or 1.89%, to 21,388.34, a six-month high. The Hang Seng China Enterprises Index was up 142.43 points, or 1.99%, to 7,286.07.

Market commenced trading with a firm footing as investors sentiment improved on news of a slowdown in US wage growth, which eased investor worries on the US Federal Reserve's stance on monetary policy.

Meanwhile, sentiments strengthened further as China opened sea and land crossings with Hong Kong on Sunday and ended a requirement for incoming travellers to quarantine, dismantling a final pillar of a zero-COVID policy.

The first day of China reopening on Sunday saw as many as 45,000 people crossing the Hong Kong-mainland China border on either direction at four land ports and one ferry terminal, according to provisional immigration figures.

Further, aiding sentiments was China central banker's pledge to support the internet sector and private firms, as well as an overhaul at Ant Group that saw its founder Jack Ma cede control of the fintech giant.

Among blue chips, Alibaba Group Holding surged 8.7% to HK$110.40 on signs regulators have ended their clampdown on technology companies. Tencent Holdings climbed 3.6% to HK$362.00 and Baidu added 3.2% to HK$131.40. Macau casino operators Sands China and Galaxy Entertainment added 3.7% and 4.2%, respectively, as China dismantled quarantines for arrivals and officially ended its zero-Covid policy.

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