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. The central government pledged an orderly easing of controls over deposit rates, reform of the initial public offering system and development of a multi-layered capital market. All major mainland lenders rose in Hong Kong yesterday, with Bank of Communications leading the gainers. Its shares rose 2.9 per cent to HK$7.83, while China Construction Bank added 1.9 per cent to HK$7.53. HSBC said the reform of state-owned enterprises could be the next big catalyst to fuel the stock market, given that SOEs represent almost 70 per cent of mainland market capitalisation. "We see big potential for a re-rating wave for Chinese SOEs as their earnings continue to improve on the back of the reforms," said Mandy Chan, head of China and Hong Kong equities at HSBC Global Asset Management. The price-to-book ratio of SOEs stands at 1.9 times, versus 3.9 times for non-SOEs. The dividend payout ratio of SOEs could increase to 30 per cent on average by 2020, up from 6 per cent to 8 per cent in 2012, HSBC said. Shares in Intime Retail, an operator of department stores and shopping sites, went on a roller-coaster ride yesterday after it named Alibaba chief executive Daniel Zhang Yong to head its board. The shares rose as much as 13 per cent in the morning, before closing down 2.75 per cent at HK$14.88.