Optimism over Hong Kong's key fundamentals helps the HSI recover its poise
It took only three days, and firmer markets in the United States on Monday, for Hong Kong stocks to make a bold move out of the correctional mood that has plagued them since the end of last week.
And once it did, the Hang Seng Index moved back to just above the 12,000-point level, setting it up for another challenge to last week's 26-month high, market participants said.
They said that the main reason the index had been able to stage a rebound so quickly after dropping more than 501.45 points last Thursday was that both institutional investors and traders had remained positive about the Hong Kong economy and the long-term market outlook throughout the correction.
'Liquidity from institutions hasn't really disappeared and the overall market conditions are still okay,' said Lionel Kwok, the chief investment officer at BOCI-Prudential Asset Management.
The Hang Seng Index gained 342.16 points, or 2.91 per cent, to end at 12,091.88, outperforming all of the other markets in the region.