NewFinancial stocks lead China markets higher after IPO resumption news, HK stocks weighed by interest rate concerns

Mainland Chinese markets kicked off the week on an upbeat note, rising to an 11-week high on Monday, led by financial companies, but a volatile Hong Kong market was unable to sustain momentum, falling back late in the session to end the day in negative territory.

The Shanghai Stock Exchange closed up 1.6 per cent to finish at 3646.8, its highest close since August 20th, while the Shanghai Shenzhen CSI300 tacked on 1.2 per cent to 3840.35.

In Shenzhen, the local exchange closed at 2191.60, up 1.82 per cent on the Friday close.

Stocks were lifted as investors celebrated the announcement by Chinese market regulators on Friday that they will resume initial public offerings after a four month suspension following the summer market unease.

The jump came in spite of new Chinese trade data released over the weekend which showed October experts had fallen 6.9 per cent from a year earlier, down for the fourth month in a row. The news sent the onshore yuan falling to a three week low of 6.3622 against the US dollar.

Philip Securities director Louis Wong said investors’ positive response to the IPO announcement was the major factor helping to send stocks higher.

“They feel it reflects that the Chinese government regards the market as having stabilised,” he said.