Hong Kong stocks rise as more China inflows expected

Hong Kong stocks rose on Thursday, as some analysts revised up their index targets in anticipation of fresh money flows from the mainland.

The Hang Seng index rose 0.4 percent, to 27,739.71, while the China Enterprises Index gained 1.7 percent, to 14,720.13 points.

HSBC said in a report that Chinese mutual funds could raise 500 billion yuan ($ 80.71 billion) from local investors to invest in Hong Kong.

Foreign investors are also jumping on board Hong Kong’s stock market rally, signalling growing confidence that a bonanza sparked by China inflows is set to continue and could pull funds from other Asian markets.

Among the most actively traded stocks on Hong Kong’s main board were Ping Shan Tea, up 12.8 percent to HK$ 0.05 Junyang Solar, up 10.7 percent to HK$ 0.47 and GOME , down 2.9 percent to HK$ 1.99.

Total trading volume of companies included in the HSI index was 3.4 billion share.

Source : Reuters

MARKET