Stocks in China and Hong Kong rose after regulators said the exchange link between the city and Shanghai will start in a week, while the yuan strengthened.
Citic Securities Co. rallied 3.6 percent in Shanghai. Hong Kong Exchanges & Clearing Ltd. climbed 4.8 percent. The trading link permits foreign money managers to buy a net 13 billion yuan ($ 2.1 billion) a day of Chinese shares, while providing a route for mainland investors to buy Hong Kong equities. The yuan climbed versus the dollar after the central bank raised its reference rate by the most since June 2010.
The Shanghai Composite Index gained 0.7 percent to 2,435.10 at 9:38 a.m. local time. The Hang Seng Index advanced 1.9 percent to 23,996.87. Brokers have been working overtime to get ready for the link, part of Chinaâ€™s efforts to boost use of the yuan and turn Shanghai into an international financial center.
The CSI 300 Index added 0.8 percent. The Hang Seng China Enterprises Index climbed 1.8 percent. Data today showed Chinaâ€™s factory-gate prices fell for a record 32nd straight month in October and consumer inflation remained subdued. Chinese exports rose more than was estimated last month, sparking concern over fake invoicing as imports expanded less than expected.
Bourses in Shanghai and Hong Kong will allow trading through the program from Nov. 17, regulators said in a joint statement today.
Source : Bloomberg