Hong Kong stocks jump on new cross-border investment scheme

The Hong Kong stock market finished solidly higher on heavy volume on Tuesday, 26 May 2015, catching-up yesterday's rally in the Mainland bourses, after news that China will soon launch a link allowing Hong Kong and mainland asset managers to sell funds to retail investors on either side. The Hang Seng Index ended up 257.03 points or 0.92% to 28249.86, off an intra-day high of 28524.60 and day low of 28237.49. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, added 368.58 points, or 2.55%, to 14801.94 points. Turnover rose to HK$200.16 billion from HK$142.6 billion on last Friday. Market participants were apparently encouraged by a new cross-border investment scheme announced over the weekend that would allow funds domiciled in Hong Kong and China to be sold in each other market starting July 1. The initial quota will be a total 600 billion yuan ($97 billion), split evenly in each direction. Market pundit expects the scheme, called mutual fund recognition, will bring a fresh flood of mainland capital to Hong Kong's market and is a big positive for the city's stocks. China launched the landmark Shanghai-Hong Kong stock connect last November and plans to roll out a similar investment link between Hong Kong and Shenzhen later this year.

Powered by Capital Market - Live News