The Hong Kong Hang Seng Index Wednesday rose 1.68% or 401.42 to 24,352.58 as traders reacted to news that mainland China is considering allowing international investors to buy bonds and exchange-traded funds through the recently opened link between the Hong Kong and Shanghai exchanges. The bond market liberalization is yet another China action, said analysts, to raise overseas capital by opening up mainland capital markets, and to increase global use of the yuan, China’s currency.
Traders Wednesday in Hong Kong were said to be optimistic that the European Central Bank will increase stimulus, important in export-oriented Far East. Leading the upside Wednesday was China Merchants Bank (144:HK) up 5.95%, then housing developer China Resources Land (1109:HK), up 4.41%, and phone-house China Mobile (941:HK).
On the downside was trading-and-investment house Swire Pacific (19:HK), off 1.45%, and utility Hong Kong and China Gas (3:HK) off 1.01%. On the 50 issues in the Hong Kong Hang Seng Index, 42 were up and seven were down on Wednesday.
The Shanghai Stock Exchange Composite Index (SHCOMP) continued its bullish ways Wednesday, rising 4.74% to 3323.61. Financial issues surged on the potential bond-market opening.