MNI China Press Digest Jan 7: A-shares, Local Govts, Logistics

MNI (BEIJING) - Highlights from Chinese press reports on Wednesday:

• Beijing's policy drive to boost technology innovation amid economic restructuring and improved performance of listed companies are expected to prolong the latest A-share rally, Yicai.com reported citing analysts. Meanwhile, ample liquidity, record low domestic interest rates, and long-term funds entering the market, will also help to extend the bull market, the newspaper said. The market may be shifting from a valuation repair phase to a profit-driven phase after the Shanghai Composite Index setting a new 10-year record on Tuesday, analysts said, noting opportunities in AI, domestic semiconductor production, new energy technologies, and innovative drugs as well as geopolitical risks that needed close monitoring.
• Several provinces have set their 2026 priorities on technological innovation, major project construction and optimising the business environment, the 21st Century Business Herald reported, citing statements from local meetings. Beijing has released an action plan to build an AI innovation hub, aiming to expand the industry to more than CNY1 trillion in scale over the next two years. Henan said it will implement a range of infrastructure projects, including comprehensive transportation systems, new energy systems, modern water networks and urban renewal. Hainan said it would expand the import and supply of high-quality goods and services, with a focus on duty-free shopping for offshore consumers, healthcare and international education.
• China's logistics industry prosperity index rose by 1.5 percentage points to 52.4% in December, hitting the highest level of the year, CCTV News reported citing data by China Federation of Logistics and Purchasing. The logistics volume sub-index increased for the second month to 52.4%, along with the equipment-utilisation rate, new orders, the capital turnover rate and employment sub-indexes, which all rose into the expansion range.