Update | Hong Kong, Shanghai stocks extend rally led by financials, car makers
Geely Auto, which owns Volvo Cars, surges 6.9pc; China Life Insurance up 3.2pc
Hong Kong and Shanghai stocks scored their highest finishes in months on Monday after the three major US indices marched further into record territory last week on US President Donald Trump’s promise of a “phenomenal” tax plan.
Hong Kong’s Hang Seng Index extended its bull streak to a fourth straight session and closed up 0.6 per cent or 136 points at 23,710.98, the highest level since October 12.
The Hang Seng China Enterprises Index, which tracks Hong Kong-listed mainland Chinese companies, outperformed the benchmark and advanced 1.3 per cent or 132.63 points to finish at 10,257.84.
Daily turnover in Hong Kong rose further to HK$91 billion, the fourth session it stayed above the HK$80 billion mark.
Capital flows into Hong Kong’s market have gained strong momentum since last Wednesday, when daily turnover jumped 30 per cent from Tuesday’s HK$69 billion. Last week, daily turnover averaged nearly HK$82 billion, up 48 per cent from the previous week.
“The money is flowing back into Hong Kong equities due to multiple factors,” said Ou Yafei, an analyst for GF Securities.