Hang Seng Index hits six-year high on economic data and property hopes
Benchmark climbs 2.3pc to six-year high after bright services data and prospect of eased policy on mainland property loans hearten investors
The Hang Seng Index rallied yesterday to its highest point since 2008, climbing 2.32 per cent in intraday trading and breaking the 25,000-point mark on positive economic data and hints that the central government could further promote lending to the property sector.
The index hit a 52-week top of 25,325.16, its loftiest since May 2008, as major companies such as China Mobile and Industrial and Commercial Bank of China vaulted higher on positive news. The index closed 568.93 points or 2.3 per cent up at 25,317.95.
"[Hong Kong shares] got a boost from the A-shares market, which has risen 1 per cent each day for three days in a row," said Louis Wong, a director at Phillip Securities in Hong Kong. "This has been a rise in several sectors, like Chinese telcos and property companies."
The Shanghai Composite Index climbed by more than 3 per cent since the start of the week to 2,288 points, a 15-month high watermark driven in part by the release of better-than-expected economic data.
Shares of mainland property developers listed in Hong Kong rallied and rumours circulated that the People's Bank of China planned to promote more lending to the mainland property sector and that cities would continue to loosen the purchase controls that have dampened the market recently.
"This was one of the main reasons for the rally," said Kenny Tang Sing-hing, general manager at AMTD Financial Planning in Hong Kong.