Shanghai Composite hits fresh 3-year high

Mainland China share market closed at fresh three-year high on Wednesday, 12 November 2014, as investors continued to chase brokerages shares on hopes it will benefit from exchange link between Hong Kong and Shanghai. The benchmark Shanghai Composite Index, which tracks both A and B shares, surged 1% at 2494.48, the highest close since Nov. 15, 2011, when it closed at 2529.76. Investment rationale underpinned after official reports that bourses in the two cities will begin trading through the program, which allows a net 23.5 billion yuan a day in cross-border purchases, on November 17. The exchange link between Hong Kong and Shanghai will give foreign investors unprecedented access to China's $US4.2 trillion equity market. The exchange link marks one of China's biggest steps toward opening up its capital account, boosting global use of the yuan and turning Shanghai into an international financial centre.

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