China-related shares continued to shine yesterday, fuelled by money previously tied up with, and the debut gains realised from, recent initial public offerings.
The Hang Seng Index added 0.94 per cent to end at 12,487.99, with banking stocks in focus amid a flood of liquidity.
The H-share index gained 2.54 per cent or 115.27 points to a fresh six-year high at 4,639.02, extending a gain of 5.02 per cent last Friday.
'Trading is usually thin ahead of the Christmas holiday. However, with liquidity abundant in the market, this year's pre-Christmas trading was very different to previous years,' said Eugene Law, a China analyst at Shenyin Wanguo Securities.
Leading the gains yesterday was China Life Insurance which soared 9.78 per cent to $5.05. The counter has gained 39 per cent since listing last Thursday and was again the most actively traded stock yesterday. China Life saw $2.62 billion in shares change hands, accounting for about 17 per cent of total turnover of $14.71 billion.
'There are strong buying positions from European and American fund houses for China Life on the expectation that the counter would be included in the MSCI and other benchmarks,' said Steven Leung Wai-yuen, a director at UOB Kay Hian.