Chinese Stocks in Hong Kong Jump to 2008 High in Catch-Up Rally

Chinese stocks trading in Hong Kong rose to a seven-year high, tracking Monday’s surge for mainland equities, amid speculation cross-border sales of funds will fuel demand for the city’s equities.

The Hang Seng China Enterprise Index gained 2.6 percent to 14,812.72 at 10 a.m., while the Shanghai Composite Index slipped 0.4 percent, paring Monday’s 3.4 percent advance. China and Hong Kong approved cross-border sales from July 1 in a move that will widen access to financial markets and capital in the world’s second-largest economy. The initial quota will be a total 600 billion yuan ($ 97 billion), split evenly in each direction.

Hong Kong’s Hang Seng Index increased 1.3 percent, while the CSI 300 Index, which surpassed the 5,000 level Monday, decreased 0.4 percent.

Source: Bloomberg