Hong Kong Market extends gains on upbeat Mainland lead

The Hong Kong stock market finished higher for third day in row on Monday, 06 July 2020, on following spurt in China's stock market on the back of economic recovery optimism underpinned sentiment.

At closing bell, the benchmark Hang Seng Index surged 3.81%, or 966.04 points, to 26,339.16. The Hang Seng China Enterprises Index added 4.72%, or 483.54 points, to 10,726.83. Both the indexes closed at their highest level since March 5. The sub-index of the Hang Seng tracking energy shares rose 3.9%, while the IT sector rose 1.05%; the financial sector ended 4.85% higher and the property sector rose 4.21%.

 

Hong Kong markets got a boost on the back of economic recovery optimism after China's state media report published over the weekend said the A-share market had the basis and key elements for a bull market. It cited sound economic fundamentals, capital market reforms and continued fund inflows into Chinese shares. Meanwhile, policy easing and continued reforms in the Mainland China capital markets and a registration-based IPO system for the start-up board, also helped shore up investor confidence.

Aiding the rally, mainland investors purchased about 11.2 billion yuan ($1.59 billion) worth of Hong Kong shares via the Stock Connect.

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