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Hong Kong Stocks gain ahead of the Lunar New Year holiday

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Capital Market
Last Updated : Feb 10 2021 | 9:04 PM IST
Hong Kong stock market finished session at three-week highs on Wednesday, 10 February 2021, as risk sentiments underpinned after upbeat data pointed to a continued recovery in China's economy. Optimism about more fiscal stimulus and falling coronavirus infections rates helped to underpin investor sentiment to some extent.

At closing bell, the benchmark Hang Seng Index inclined 1.91%, or 562.53 points, to 30,038.72. The Hang Seng China Enterprises Index added 1.79%, or 207.49 points, to 11,810.25.

Consumer prices in China were up 1% month-on-month in January, following the 0.7% increase in December, the National Bureau of Statistics said. On a yearly basis, consumer prices fell 0.3%, following the 0.2% gain in the previous month. The bureau also said that producer prices rose 0.3% year-on-year in January after sinking 0.4% a month earlier.

China's new bank loans surged to new highs in January, boosted by seasonal demand, while broad credit growth slowed, separate data showed. , the People's Bank of China (PBOC) data showed that China's new yuan-denominated loans totaled 3.58 trillion yuan (about $556.3 billion) in January, an increase of 225.2 billion yuan year on year, hitting a record high.

Hong Kong Exchanges and Clearing (HKEX) rose 3.8% to HK$534. The bourse operator announced on Tuesday that it had chosen JPMorgan Chase & Co banker Nicolas Aguzin to replace Charles Li Xiaojia as its chief executive.

Banking stocks gained after the People's Bank of China monetary data released on Tuesday showed a surge in new credit last month suggesting conditions remained supportive of growth beyond the Lunar New Year. Hang Seng Bank added 2.8% to HK$145.30. China Construction Bank rose 2.5% to HK$6.14, while Bank of Communications gained 2.6% to HK$4.31. HSBC increased 2.2% to HK$42.60.

Kerry Logistics Network rose 5.5% to HK$24.75 after trading resumed on Wednesday. Chinese courier SF Holding announced plans to acquire a 51.8% stake in Kerry Logistics for HK$18.80 per share.

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First Published: Feb 10 2021 | 8:24 PM IST

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