China, HK stocks gain on border reopening, Beijing’s support for internet sector

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Jan 9 (Reuters) – China stocks rose for a sixth straight session on Monday, while Hong Kong shares jumped to a six-month high, as the opening from -a complete overhaul of the world’s second largest economy has added fuel to the already heated bets of a robust undertaking. recovery from the pandemic.

** Sentiment also got a boost from the central banker’s pledge to support the internet sector and private firms, as well as a review at Ant Group that saw its founder Jack Ma relinquish control of the fintech giant.

** China’s blue-chip CSI300 Index gained 0.8% to a 3-1/2-month closing high, while the Shanghai Composite Index ended up 0.6%.

** Hong Kong’s Hang Seng Index rose 1.9% to its highest close since early July, led by technology shares.

** China opened sea and land crossings with Hong Kong on Sunday and ended a requirement for incoming travelers to quarantine, dismantling a final pillar of a zero-COVID policy.

** Ralph Hamers, group chief executive officer at UBS, told the bank’s annual Greater China Conference that he saw signs of recovery in China, where authorities have moved to stabilize the property market who were struggling and scrapped strict COVID restrictions.

** “The end of the zero-COVID policy will … have a huge positive impact on domestic spending,” Hamers said. “We believe there is a lot of opportunity for those committed to investing in China.”

** Chinese internet stocks rose while Hong Kong’s Hang Seng Tech Index jumped 3.2% after Guo Shuqing, the Communist Party secretary of the People’s Bank of China, told media of – state that China’s repression of the internet sector had come to an end.

** Meanwhile, shares of listed Chinese companies that count Ant Group as a major shareholder – including Longshine Technology and Hundsun Technologies – gained after announcements that Ant founder Jack Ma was relinquishing control of the fintech giant following a review .

** Shares traded in Hong Kong of Alibaba Group jumped 8.7% for almost six months.

** “The rapprochement between government and the private sector bodes well for Internet platforms,” ​​Sean Darby, chief global equity strategist at Jefferies, wrote in a note. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)

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