H-share rally sets up winning start to 2015 for HK market

A rally in Chinese shares pushed the H-share index to its highest in almost three years at the end of the morning session in Hong Kong on Friday, marking a sizzling trading start to the new year.

The index jumped 1.94 per cent to 12217.34 points, with property developer China Overseas surging 6.51 per cent to HK$24.55 and insurer Ping An Ping An climbing 3.41 per cent to HK$81.80.

The heavy buying in mainland shares also boosted the Hang Seng Index, with the benchmark up 0.72 per cent to end the morning at 23774.4.

Ben Kwong Man-bun, a director of KGI Asia, says mainland stocks are the driven force for the markets as many speculate Beijing will usher in more monetary easing policies to boost the economy.

“The recent PMI figures are not good and many believe Beijing may have policies to cut the interest rate further or other measures to boost the economy. This is why all the mainland financial and other mainland plays are doing well this morning,” he said.

Many H-shares - the stocks of mainland Chinese companies listed in Hong Kong market - reached their highest level in three years on Friday.

The top five most active stocks in the morning are all mainland H-shares, with mainland property play China Overseas up 6.51 per cent to close at HK$24.55, insurer Ping An rose 3.41 per cent to HK$81.8.