Date
11 December 2017

HSI climbs 1.5% on cross-border market access deal

Hong Kong stocks closed significantly higher Thursday, driven by news a cross-border market access scheme has won approval from regulatory authorities.

The benchmark Hang Seng Index picked up 363 points, or 1.51 percent, to finish at 23,186 as turnover surged above HK$100 billion (US$12.9 billion).

Earlier, the China Securities Regulatory Commission and Hong Kong’s Securities and Futures Commission announced a tie-up between the Shanghai and Hong Kong stock exchanges, allowing investors in both cities to directly invest in each other’s equity market.

The Hang Seng China Enterprises Index, the main gauge for H shares, added 0.39 percent to 10,421. The Shanghai Composite Index gained 1.38 percent to end at 2,134 points.

The news boosted large-cap new-economy counters and Macau gaming plays.

Tencent soared 7.5 percent to become the day’s best performing blue chip. Sands China (01928.HK) rallied 6.8 percent and Galaxy Entertainment (00027.HK) put on 5.2 percent.

The brokerage sector, seen as the primary beneficiary of the scheme, saw notable increase across the board, with industry leader CITIC Securities (06030.HK) gaining 9 percent.

Investors piled into H shares, highlighting their deep discount to their A-share counterparts in the mainland. Automobile parts maker Zhejiang Shibao (01057.HK, 002703.CN) climbed above 64 percent in Hong Kong to a 52-week high. Northeast Electric Development (00042.HK, 000585.CN) jumped 39 percent.

– Contact the writer at [email protected]

RA

 

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