Hong Kong stocks rebound, as investors get set for resumption of mainland trade
Hang Seng Index rallies 1.81 per cent, adding 558.26 points to 31,431.89
Hong Kong stocks rebounded on Wednesday, driven by Chinese financials and oil stocks amid expectations of capital inflows when mainland Chinese markets reopen on Thursday after the Lunar New Year holiday.
The Hang Seng Index finished 1.81 per cent higher, adding 558.26 points to 31,431.89. The Hang Seng China Enterprises index, or the H-share gauge, jumped 2.34 per cent or 290.01 points to 12,686.88.
“The market is being pulled in one direction by concerns over interest rate rises while being pulled in the opposite direction by optimism over southbound flows,” said Stanley Chan, director of research at Emperor Securities.
Internet giant Tencent Holdings was the most heavily traded share, gaining 2.74 per cent to HK$458.00. Chinese lens maker Sunny Optical Technology Group increased 0.69 per cent to HK$132.20.
Chinese financials and oil stocks were sharply higher before tomorrow’s reopening of mainland markets after a week-long Lunar New Year holiday.
Industrial & Commercial Bank of China climbed 3.34 per cent to HK$7.11, China Construction Bank was up 2.76 per cent to HK$8.56 and Ping An Insurance gained 1.76 per cent to HK$85.60.
