The Hang Seng Index saw a robust rally of 2.21 per cent on Tuesday morning but closed the day up a more modest 0.92 per cent as cautious investors took profit.
The Hang Seng Index closed up 257.03 points at 18,249.86 points while the Hang Seng H-share Index that tracks mainland Chinese companies listed in Hong Kong closed up 2.55 per cent, or 368.58 points, at 14,801.94 points.
The Shanghai Composite Index rose 2.02 per cent to 4,910.90, yet another record high since the global financial crisis of 2008, following a smart 3.35 per cent rally on Monday. The Shenzhen Composite Index jumped 3.38 per cent to another all-time high of 16,903.47, continuing its rally of 1.61 per cent on Monday.
“The (mainland) market seems to be accelerating rather than cooling,” said Gerry Alfonso, a director of Shenwan Hongyuan Securities.
The turnover of the Hong Kong stock market reached HK$203.64 billion on Tuesday, high compared to recent weeks. The northbound turnover of the Shanghai-Hong Kong Stock Connect reached 17.98 billion yuan, one of the highest ever northbound volumes, while the southbound turnover was more modest at HK$9.07 billion.
Hong Kong investors traded in A-shares because the mainland market was good, said Ben Kwong Man-bun, a director of brokerage KGI Asia.
