The Hong Kong stock market gained 1.19 per cent yesterday as investors continued to focus on mainland-related plays after Beijing cut interest rates on Thursday.
The Hang Seng Index rose 153.55 points to 12,992.76 on a turnover of $8.16 billion.
Among index stocks, some of the biggest gainers were Citic Pacific, by 5.86 per cent to $22.55, Guangdong Investment, 4.54 per cent to $1.61, and China Resources Enterprise, 3.79 per cent to $12.30.
The H-share index soared 7.05 per cent to 500.9 points, while the red-chip index added 5.7 per cent to 1,046.41 points.
'This basically follows up on our view that China will reflate,' said BNP Prime Peregrine director of sales Jason Ho Ka-keung.
'Our expectation is that China will print money.' China Everbright was the biggest red-chip gainer, by 14.56 per cent to $5.90.
Its stock price gained most from the mainland interest rate cut as the deposit rate was slashed by an average of one percentage point, while the lending rate was reduced by 0.75 point, increasing the margins of the company's banking arm.
