UpdateBull run resumes in mainland stock markets, bolstered by Beijing agenda
Shanghai and Shenzhen both rise more than 3 per cent, with the mood buoyed by Beijing's announcement of an accelerated reform agenda
Mainland markets resumed their bull run yesterday, with Shanghai and Shenzhen both up more than 3 per cent, after sentiment was bolstered by Beijing's announcement of an accelerated reform agenda to open up the financial markets.
In Hong Kong, the Hang Seng Index rose 0.37 per cent, or 102.29 points, to 27,693.54, while the Hang Seng China Enterprises Index added 1.9 per cent to 14,191.5. Total turnover on the main board and Growth Enterprise Market rebounded to HK$138.61 billion yesterday, up from HK$119 billion on Monday.
The Shanghai Composite Index jumped 3.1 per cent to 4,417.55, while the Shenzhen Composite Index rose 3.1 per cent to 15,127.38, with 1.39 trillion yuan (HK$1.76 trillion) worth of shares changing hands in the two markets. Shenzhen's ChiNext board, a Nasdaq-style second board for technology companies and start-ups, added 1.35 per cent to 3,322.77.
More than 200 companies saw trading in their shares suspended on the mainland after they hit their daily 10 per cent upside limit. Among them was Shanghai-listed Huatai Securities, which is marketing a US$4.5 billion Hong Kong initial public offering and rose 10 per cent in the first hour of trading. Huatai shares have risen 137 per cent in the past six months, beating an 80 per cent increase in the Shanghai Composite Index.
"A consolidation in Hong Kong stocks has helped lay the groundwork for a longstanding upturn," said Ben Kwong Man-bun, a director at KGI. "Firmer guidance from Beijing on the reform of the capital markets and interest rate liberalisation helped the mood."
On Monday, the State Council unveiled its economic reform priorities for the year, with the authorities eager to further open up the capital markets and boost the yuan's global standing.