Hong Kong Stocks Close 1.30% Higher

Hong Kong equities ended 1.30 percent higher Monday, tracking another rally in China and following news Greece had finally struck a bailout reform deal with creditors that keeps it in the eurozone.

The benchmark Hang Seng Index added 322.73 points to 25,224.01 on turnover of HK$ 136.80 billion (US$ 17.65 billion).

The HSI has now advanced more than seven percent in three sessions as traders move back into the market, which had tanked in recent weeks with mainland Chinese stocks.

Shanghai plunged by a third in just under a month from its June 12 peak until authorities announced a batch of measures to prevent an all-out crash. Among measures announced were a police crackdown on short-selling and a ban on big shareholders and company executives from selling stock for six months.

Shanghai’s composite index added 2.39 percent Monday, meaning it has soared 13 percent in the past three trading days. Also, more than 400 companies resumed trading after half the market was suspended over the past month to stop a market meltdown.

As the mainland sell-off spread into Hong Kong, so the recovery has also provided lift to the southern Chinese financial hub.

Source: AFP