HONG KONG (AP) — Chinese shares rallied on Friday following better-than-expected import and export data, signaling increased demand that could support Beijing’s effort to rev up the economy.
The Hang Seng Index added 1.1% to 16,405.94 in morning trading, led by the tech index, which advanced 1.8% as China senior officials announced their focus on supporting research and industries to attain breakthroughs in key technologies, including computer chips, during the National People’s Congress.
The Shanghai Composite Index gained 0.2% to 3,032.82, and the smaller market in Shenzhen rose 0.5%.
Customs data released Thursday showed exports in January-February rose 7.1% from a year earlier, up from a 2.3% rise in December. Imports likewise rose 3.5%, compared to 0.2% growth in December. Despite China’s grappling with challenging issues in the property market, local government debts, and geopolitical tensions, such data signals resilience in the economy.
“The robust performance in overseas shipments may provide some semblance of relief amid persistently subdued domestic demand,” Stephen Innes of SPI Asset Management said in a commentary. “However, China cannot depend solely on international markets to purchase inexpensive goods to salvage its economy.”
E-commerce giant Alibaba Group Holding gained 0.6%, NetEase was up 2.2% and Tencent edged 0.1% higher.
On the losing side, video-sharing platform Bilibili slipped by 3.1% after the company’s financial report showed a net loss of 1.297 billion yuan ($180 million dollars) in the fourth quarter of 2023, narrowing by 13% compared to the same period last year.
On Thursday, the U.S. House of Representatives plans to expedite a vote on legislation that would require TikTok’s parent company, ByteDance, to divest from the app within six months or face a U.S. ban. TikTok has around 170 million U.S. users, and efforts to ban the application have been ongoing since 2020, during the administration of former US president Donald Trump.
In the bond market, China’s central bank conducted a seven-day reverse repurchase of 10 billion yuan (1.41 billion dollars) at an interest rate of 1.8% on Friday. The People’s Bank of China said in a statement that the move was designed to keep liquidity in the banking system.