Update | Insurers, banks and property firms lead the charge on record day for Hong Kong stocks
Analysts say that the optimistic sentiment for the market is set to continue with the promise of new listings to come
Insurance companies, property firms and banks led the gains on a red-letter day for the Hong Kong stock market on Tuesday, tapping into a wave of optimism that further gains are to come.
The positive sentiment followed the announcement of new listing rules that analysts said could bring a surge in companies applying to list, with Ping An Insurance extending gains to a fourth day after it said its online wealth management unit Lufax, the largest online wealth manager in China, is planning a Hong Kong listing in April.
Analysts said the market is likely to remain strong in the near future, after a record finish for the Hang Seng Index on Tuesday, when it closed at 31,904.75, surpassing the previous record close set on October 30, 2007.
“Overall optimism in Hong Kong’s market can probably last until the Lunar New Year, barring days when investors lock in profit,” said Kenny Wen, strategist at Everbright Sun Hung Kai Wealth Management.
In the first three weeks of this year, average daily turnover has risen to HK$130 billion (US$16.6 billion), compared to HK$88.25 billion in 2017 and HK$66.92 billion in 2016.
In Tuesday trading, Ping An added 2.78 per cent to HK$90.65, while China Life advanced 2 per cent to HK$25.50 and AIA Group gained 1.49 per cent to HK$68.30. Banks saw the highest turnover at HK$20.98 billion. China Construction Bank rose 3.7 per cent to HK$8.13 and Industrial and Commercial Bank of China was up 3.31 per cent at HK$6.87.