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Hang Seng Index approaches 30,000 level on record trading volume as mainland cash fuels best start to year since 1985
- Hang Seng Index came within 1.2 per cent of 30,000-point level last seen in May 2019 as HK$301.6 billion worth of stocks changed hands in market’s busiest day ever
- Stocks extended their best start to a year since 1985 with an 8.9 per cent rally, recouping US$2.5 trillion of market value from March 2020 lows
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Hong Kong stocks surged, driving the benchmark index to the highest level in 20 months and daily turnover to an all-time high, as mainland funds flocked to the world’s cheapest major markets with record purchases.
The Hang Seng Index jumped 2.7 per cent, or 779.51 points, to 29,642.28 at the close on Tuesday. That put the gauge within 1.2 per cent of 30,000 points, a level not seen since May 2019. The Shanghai Composite Index slipped 0.8 per cent.
Some HK$301.6 billion (US$38.9 billion) worth of shares changed hands, making it the busiest day ever in Hong Kong’s stock market history. The inflows also fuelled the local dollar, which advanced against the US currency to the strongest since January 8.
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The market’s 8.9 per cent gain so far this month marked its best start to a year in 36 years. The index rose 13.3 per cent in the first 19 days of 1985, the year Ronald Reagan was in the White House, and Hong Kong Canto-pop icon Anita Mui conducted her first concert at 21.
Mainland fund inflows through the Stock Connect programme have been the biggest catalyst for the city’s stocks. Those traders have spent HK$185.3 billion on local stocks in the new year, according to Bloomberg data.
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