Investors sentiment got a boot on the prospects of completing a phase-one U.S.-China trade deal after encouraging comments from President Donald Trump and Chinese officials, and after Beijing laid out plans to bolster its economy, which included investments in infrastructure and easing of residency curbs.
Chinese Foreign Ministry spokesman Geng Shuang said on Wednesday that officials from Beijing and Washington were in close communication about detailed arrangements for the deal's signing and other follow-up work. Those comments follow remarks from President Trump, who on Christmas Eve said that the deal is done, it's just being translated right now. Trump also said that he and China's leader, Xi Jinping, would hold a signing ceremony for the partial trade resolution in January. We'll be having a quicker signing because we want to get it done.
China scrapped restrictions on household registration permits for cities under 3 million population, and comprehensively loosened such curbs for cities of 3 million to 5 million residents, according to a document issued by the cabinet. In April, China said it would relax residency curbs in many of its smaller cities this year and increase infrastructure spending. Easing norms for urban residency will promote urbanisation and boost housing demand.
Among b;ue chips, Chinese gaming and social media giant Tencent Holdings (700 HK) contributed the biggest gains to the Hang Seng, rising 1.9% to its highest level since May. HSBC (00005) gained 0.579% to HK$60.85. China Mobile (00941) advanced 1.79% to HK$65.4. HKEX (00388) put on 1.342% to HK$256.8.
Financials advanced broadly. Insurer AIA Group (1299 HK) added 1.7% to HK$80.75, while one of mainland's biggest lenders China Construction Bank (0939 HK) gained 2% to HK$6.76.
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