Jan 9 (Reuters) – Chinese stocks rose for the sixth straight session on Monday and Hong Kong’s index jumped to a six-month closing high as the full reopening of the world’s second-largest economy fueled expectations of a robust recovered from the pandemic.
Sentiment also improved after the central bank pledged to support the internet sector and private companies, as well as the reorganization of Ant Group, which led to its founder, Jack Ma, losing control of the fintech giant.
The Shanghai Composite rose 0.58% to 3,176.08, while the blue-chip CSI300 rose 0.81% to 4,013.12 to close three-and-a-half months on.
Hong Kong’s Hang Seng index rose 1.89% to 21,388.34 points – the highest close since early July – led by technology stocks.
The China Enterprises Index rose 1.99% to 7,286.07 points.
China announced a new phase in its fight against the coronavirus on Monday after lifting restrictions on entry from abroad a day earlier, sparking a rally in financial markets.
“The abandonment of the ‘zero tolerance’ policy for COVID-19 … will have a large positive impact on domestic spending,” UBS’s Ralph Hamers said at the bank’s annual Greater China Conference. There are many possibilities.”
China’s internet stocks soared and Hong Kong’s Hang Seng Tech index jumped 3.2% after Guo Shuqing, Communist Party secretary of the People’s Bank of China, told state media that China’s pressure on the internet sector it was about to end.
Shares of Alibaba Group listed in Hong Kong rose 8.7%, approaching a six-month high.
“The reconciliation between government and the private sector is a good sign for internet platforms,” Jefferies’ Sean Darby said in a statement.
The original message in English is available at: (Reuters Shanghai)
