Hong Kong Market surges 2.8%

Hong Kong share market finished session higher on Wednesday, 12 January 2022, on tracking gains in other Asia-Pacific markets as comments from the Fed chief appeared to reassure investors, with further decline in inflationary pressure in the county in December added support as the stage appears set for further monetary policy easing in China.

At closing bell, the benchmark Hang Seng Index surged 2.79%, or 663.11 points, to 24,402.17. The Hang Seng China Enterprises Index rose 2.91%, or 243.84 points, to 8,612.85.

The China's National Bureau of Statistics said today that consumer prices in China were up 1.5% year-on-year in December, down sharply from 2.3% in November. The bureau also said that producer prices climbed an annual 10.3%, slowing from 12.1% a month earlier. Lower inflation opens room for the government to loosen monetary policies further.

The State Council, China's Cabinet, on Tuesday called for efforts to stabilise trade amid growing risks to economic growth. The government said earlier this week that it would boost investments in key national projects and domestic consumption.

Shares of tech companies advanced, with Alibaba climbing 5.9% while its health unit gained 3.7%. JD.com jumped 11%, Meituan climbed 9.1%, and NetEase strengthened 6.8%.

CNOOC shares closed 6.8% higher after the state-controlled oil explorer announced in 2022-2024 business strategy that it would pay at least 40% of its earnings as dividends. It plans to pay a 20th anniversary special dividend on top of regular 2021 dividend.

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