Mainland China and Hong Kong stocks advance on upbeat trade data

Reuters01-14
Mainland China and Hong Kong stocks advance on upbeat trade data

SHANGHAI, Jan 14 (Reuters) - Mainland China and Hong Kong stocks advanced on Wednesday, with the Shanghai benchmark hitting a more than a decade high, as upbeat trade data lifted market sentiment.

** At the midday break, the Shanghai Composite index .SSEC rose 1.2% to 4,188.24 points, the highest level since June 30, 2015. The blue-chip CSI300 index .CSI300 gained 1.08%.

** The smaller Shenzhen index .SZSC was up 2.13%, the start-up board ChiNext Composite index .CNT rose by 2.24% and Shanghai's tech-focused STAR50 index .STAR50 surged 3.71%​.

** China reported a strong export run in 2025 with a record trillion-dollar surplus, as producers braced for three more years of a Trump administration set on slowing the production powerhouse by shifting U.S. orders to other markets.

** "Strong export growth helps to mitigate weak domestic demand," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. "Combined with the booming stock market and stable U.S.-China relations, the government is likely to keep the macro policy stance unchanged at least in the first quarter."

** President Donald Trump said he thinks China can open its markets to American goods, once again asserting he had a good relationship with Chinese leader Xi Jinping.

** U.S. on Tuesday formally greenlit China-bound sales of Nvidia's NVDA.O H200 chips, its second-most powerful artificial intelligence chip, putting in place a rule that will likely kickstart shipments despite deep concerns among China hawks in Washington.

** AI shares were one of the biggest winners in morning deals, with a sub-index tracking the sector .CSI930713 jumping 3.01%. Hygon Information Technology 688041.SS surged 5.96%, while Cambricon Technologies Corp 688256.SS rose 1.56%.

** In Hong Kong, the benchmark Hang Seng Index .HSI rose 0.92%, while the city's tech shares .HSTECH leapt 1.53%.

** Separately, market participants look to China's December credit lending data due later this week for more clues on the health of the economy.

(Reporting by Shanghai Newsroom; Editing by Harikrishnan Nair)

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