Hong Kong stocks rally as Brexit momentum shifts towards ‘remain’; Shanghai stocks end little changed
The Hang Seng Index gains 1.69 per cent; Shanghai Composite Index adds 0.1 per cent
Hong Kong stocks closed sharply higher on Monday, fueled by a slight shift in sentiment towards a “remain” vote in the British referendum on membership of the EU.
The Hang Seng Index closed at 20,510.2, up 1.69 per cent or 340.22 points, while the Hang Seng China Enterprises Index, which tracks Chinese stocks listed in Hong Kong, rose 1.81 per cent or 153.64 points to 8,639.51.
Hanna Li Wai-han, a strategist at UOB Kay Hian (Hong Kong), said Hong Kong stocks continued to climb on Monday because of a slight swing back in favour of Britain staying in the European Union.
Investor sentiment in recent weeks has been largely determined by Britain’s debate over whether to stay in the EU and bookmakers’ odds suggest the chances of a “Leave” vote have faded since the shooting-death of pro-European lawmaker Jo Cox on Thursday.
Linus Yip, First Shanghai Securities chief strategist said equity markets are swinging following the movements in opinion polls about Brexit vote.
“The banking sector is the most sensitive to Brexit Vote,” said Yip. These banks especially the international ones will be in great volatility following any opinion polls movements about the Brexit vote.
Another positive factor for Hong Kong stocks performance was the statement by Deng Ge, a spokesman for the China Securities Regulatory Commission, who said on Friday that the Shenzhen Hong Kong Stock Connect will be launched this year.