Inflows propel HSI to one-year high

Business | Victor Zhong and Bloomberg 19 Jan 2021

The benchmark Hang Seng Index yesterday rose by 288.91 points, or 1.01 percent, to one-year high of 28,862, as capital continued flowing in from the north.

Hong Kong Exchanges and Clearing (0388) gained 5.15 percent to HK$482.

Technology and innovation will become future growth drivers as over 60 percent of funds raised last year from initial public offerings went to the new economy and biotech companies, said HKEX chairwoman Laura Cha Shih May-lung.

China Renaissance Securities (Hong Kong) expects the strong capital inflows from the mainland to Hong Kong's stock market to continue.

Pang Ming, head of macro and strategic research at China Renaissance Securities (Hong Kong), said investors were attracted by the increasing number of high-calibre companies listing in Hong Kong and good returns from Chinese stocks.

Meanwhile, bitcoin retreated further from the US$40,000 (HK$310,140) level , a decline that could portend more losses , say strategists at JPMorgan Chase & Co. The cryptocurrency could be hurt by an exodus of trend-following investors unless it can "break out" above US$40,000 soon, a team including Nikolaos Panigirtzoglou said.

Hong Kong Securities and Futures Commission is paying attention to the related regulation on virtual asset trading or investment business, according to Clara Chiu Ka Lai, head of the fintech unit and director of licensing at the Securities and Futures Commission.

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