8 Apr 2015
Hang Seng hits 7-year high
FXStreet (Mumbai) - Hong Kong's benchmark Hang Seng index posted its biggest daily rise in more than three years and hit a seven-year high on Wednesday as a liquidity flood entered the city from China.
The benchmark Hang Seng Index rose 2.7% to 25962.88, hitting the highest level since May 2008. On re-opening after a three-day trading holiday, the markets surged as funds flow into Hong Kong increased via a newly-launched trading link.
Hang Seng relatively cheap
Hang Seng had struggled to make gains this year and had been left behind as investors instead poured money into Shanghai. However, the growing divergence meant the stock prices of on Hang Seng were relatively cheaper than those on Shanghai. This is evident from a 4.3% rise in Hang Seng China Enterprises Index, which tracks Chinese companies trading in Hong Kong.
Some of the biggest gainers for the day were - China Oilfield Services Ltd., up 18%, China Communications Construction Company Ltd., up 14.7%. Shares of brokerages Haitong Securities Co., Citic Securities Co. and Hong Kong Exchanges & Clearing Ltd., the city’s exchange operator, also rallied sharply on the increased trading volumes.
"The party has begun, and you can feel the excitement today," said Chen Zhizhong, Shenzhen-based analyst at China Merchant Securities.
The benchmark Hang Seng Index rose 2.7% to 25962.88, hitting the highest level since May 2008. On re-opening after a three-day trading holiday, the markets surged as funds flow into Hong Kong increased via a newly-launched trading link.
Hang Seng relatively cheap
Hang Seng had struggled to make gains this year and had been left behind as investors instead poured money into Shanghai. However, the growing divergence meant the stock prices of on Hang Seng were relatively cheaper than those on Shanghai. This is evident from a 4.3% rise in Hang Seng China Enterprises Index, which tracks Chinese companies trading in Hong Kong.
Some of the biggest gainers for the day were - China Oilfield Services Ltd., up 18%, China Communications Construction Company Ltd., up 14.7%. Shares of brokerages Haitong Securities Co., Citic Securities Co. and Hong Kong Exchanges & Clearing Ltd., the city’s exchange operator, also rallied sharply on the increased trading volumes.
"The party has begun, and you can feel the excitement today," said Chen Zhizhong, Shenzhen-based analyst at China Merchant Securities.