Hong Kong Stocks Rally After Hitting Seven-year High

MarketWatch Pulse

Hong Kong stocks jumped Thursday morning, after hitting a seven-year high in the previous session, triggered by recent rallies in mainland Chinese markets. The Hang Seng Index popped up 4.1%, looking likely to extend a six-day winning streak. The benchmark index climbed 3.8% on Wednesday, with its trading volume setting record high, bolstered by money inflows from mainland China. Mainland Chinese investors used up the 10.5-billion-yuan ($1.7 billion) daily quota on Wednesday to buy Hong Kong shares via the Hong Kong-Shanghai Stock Connect scheme for the first time since its launch in November. The mainland-China-tracking Hang Seng China Enterprises also pushed up 4.3% Thursday morning, following a previous 5.8% surge. Boosted by soaring market turnover, Hong Kong Exchanges & Clearing Ltd. , the city's sole bourse operator, spiked 9.1%, after leaping 12.2% in the previous day. Several heaviest-weighted blue-chips rose sharply, as AIA Group Ltd. gained 8%, and Chinese online major Tencent Holdings Ltd. jumped 5.6%. Among other market movers, Chinese brokerage firm China Galaxy Securities Co, Ltd. improved by 14.8%, Chinese PC maker and Hang Seng index constituent Lenovo Group Ltd. tacked on 13.7%, and mainland property developer China Overseas Land & Investment Ltd. , also an index component, zoomed 6% higher. On the mainland itself, Shanghai markets extended gains after closing at its highest level in seven years on Wednesday, with the Shanghai Composite Index up 0.5%.

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