New | HK stocks take cue from mainland Chinese markets
Hang Seng Index closes 0.92 per cent higher in catch-up as Beijing's aggressive military strategy sets off big rush for defence plays
After an extended weekend break on Monday, the Hang Seng Index rose on Tuesday to catch up with the sizzling mainland Chinese stock markets, boosted by expectations of increased defence spending following the release of a hawkish military white paper by Beijing.
The Hang Seng Index closed 0.92 per cent higher, while the H-share index rose 2.55 per cent.
The share price of market operator Hong Kong Exchanges and Clearing jumped 5.38 per cent to a record HK$309.40.
The Shanghai Composite Index rose 2.02 per cent to 4,910.9 points, yet another record high since the global financial crisis of 2008, following a 3.35 per cent rally on Monday.
The Shenzhen Composite Index also ended at a new high, leaping 3.38 per cent to 16,903.47 points, after rising 1.61 per cent on Monday.
"The [mainland Chinese] market seems to be accelerating rather than cooling," said Gerry Alfonso, a director of Shenwan Hongyuan Securities.
The Hong Kong market's turnover reached HK$203.64 billion, a high in recent weeks. The northbound turnover of the Shanghai-Hong Kong Stock Connect was 17.98 billion yuan (HK$22.5 billion), one of the highest on record, while southbound it was HK$9.07 billion.
