Update | Hong Kong stocks rally for third day to 26-month high on strong earnings expectations and Apple boost
Hang Seng rises as much as 0.8pc in early trade, but closes up 0.2 pc at 27,607.38 – its highest level in 26 months
Hong Kong stocks advanced for a third day running on Wednesday, as strong earnings expectations pushed up a bunch of large cap blue-chip stocks, including CK Hutchison Holdings, the conglomerate owned by Hong Kong’s richest man Li Ka-Shing.
The Hang Seng Index rose as much as 0.8 per cent to 27,747.35, the highest intra-day level since late May 2015, as Tencent and insurer AIA both hit record levels again in earlier trade.
The benchmark index surrendered most of gains by market close, but was still up 0.2 per cent, or 67.15 points, to finish at 27,607.38, the highest level in 26 months.
The Hang Seng China Enterprises Index, known as the H-share index, rose 0.3 per cent to 11,055.42.
Daily turnover maintained above HK$100 billion (US$12.8 billion), reaching HK$104.8 billion, slightly higher than Tuesday’s HK$103.3 billion.
“Hong Kong stocks still have potential to seek new highs, as their valuations remain relatively low and mainland funds will keep flowing into the market, ” said Yang Shu, an analyst for Sinolink Securities.