Chinese stocks trading in Hong Kong rallied the most this year after the nation’s central bank governor indicated more stimulus is on the way and more mainland funds were allowed to buy the city’s stocks.
China Communications Construction Co. and China Railway Group Ltd. jumped at least 14 percent in Hong Kong after President Xi Jinping provided details on the $40 billion Silk Road Economic Belt plan. Industrial Bank Co. and Industrial & Commercial Bank of China Ltd. surged more than 3 percent in Shanghai to lead gains for financial shares after central bank chief Zhou Xiaochuan said the growth rate has tumbled “a bit” too much and policy makers have scope to respond.
Hong Kong’s Hang Seng China Enterprises Index rose 3.4 percent to 12,307.47 at the noon break, heading for the biggest advance since Dec. 29. The Shanghai Composite Index added 1.6 percent to 3,750.93, the highest level since May 2008. Chinese money managers no longer need to be part of the Qualified Domestic Institutional Investor program to invest in Hong Kong shares via an exchange link between the two cities, the China Securities Regulatory Commission said Friday.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.