Hong Kong stocks rise on China’s plan to boost onshore markets to counter Trump tariffs

The Hang Seng Index advanced 1 per cent to 19,982.20 as of 9.45am local time, while the Hang Seng Tech Index gained 1.2 per cent. On the mainland, the CSI 300 Index jumped 1.5 per cent and the Shanghai Composite Index advanced 1.6 per cent.

Alibaba Group Holding surged 2 per cent to HK$83.85, semiconductor producer SMIC gained 2.1 per cent to HK$43.00, while gaming company NetEase added 2 per cent to HK$157.90.

Starting this year, 30 per cent of the annual insurance premium earned from new policy sales will be invested in China’s onshore markets, Wu Qing, the chairman of the China Securities Regulatory Commission, said at a press conference in Beijing on Thursday. These investments would increase by 10 per cent every year over the next three years, he added.

The measures comes as China tries to counter the threat of tariffs from Trump, who said that he was considering a 10 per cent tariff on Chinese exports from February 1.

At least 100 billion yuan (US$13.8 billion) of insurance funds will be allocated for the stock market in a pilot programme within the first six months, half of which will be approved before the Lunar New Year that commences on January 29, Xiao Yuanqi, the vice-chairman of the National Financial Regulatory Administration, said at the same press conference.