Mainland China and Hong Kong stocks advance on upbeat trade data

SHANGHAI: 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 rose 1.2% to 4,188.24 points, the highest level since June 30, 2015.
• The blue-chip CSI300 index gained 1.08%.
• The smaller Shenzhen index was up 2.13%, the start-up board ChiNext Composite index rose by 2.24% and Shanghai’s tech-focused STAR50 index 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 US 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 US-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. US on Tuesday formally greenlit China-bound sales of Nvidia’s 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 jumping 3.01%.
• Hygon Information Technology surged 5.96%, while Cambricon Technologies Corp rose 1.56%.
• In Hong Kong, the benchmark Hang Seng Index rose 0.92%, while the city’s tech shares 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.‑Reuters