Update | Hong Kong, mainland China stocks close higher on Beijing pension fund speculation
Shares in insurance, banking and agricultural sectors led the gains
Hong Kong and mainland Chinese stocks closed higher on Monday following a firmer Wall Street on Friday and on speculation that Beijing would soon start injecting its massive public pension funds into equity markets, which spurred a rally in the banking and insurance sectors.
The Hang Seng Index climbed nearly 1 per cent or 219 points to 23,348, while the Hang Seng China Enterprises index rose 1.62 per cent or 157.03 points to 9,840 at the close.
Banking shares largely led the gains in Hong Kong, mirroring last week’s rally in the US financial sector after US President Donald Trump ordered a review of banking regulations implemented after the 2008 financial crisis. Banks could see large savings in regulatory costs if the regulations are removed.
Hang Seng Bank rose 1.07 per cent to HK$161 at the close on Monday, HSBC climbed 0.84 per cent to HK$66.35 and Bank of China Hong Kong gained 1.14 per cent to HK$3.54.
In addition to the rally in the banking sector, mainland life insurance companies also outperformed, with heavyweight China Life Insurance leading the gains with a 7 per cent rally to close at HK$23, while New China Life Insurance added 6.75 per cent to finish at HK$39.5.
Ping An Insurance and People’s Insurance Company of China (PICC) saw gains of 4.59 per cent and 2.74 per cent respectively.