Stocks

Hang Seng index closes at 1-week high

Reuters March 18 | Updated on January 24, 2018 Published on March 18, 2015

Hong Kong’s Hang Seng Index rose nearly 1 per cent to close at a one-week high on Wednesday, following bullish mainland markets, but investors remain wary of prospects for tighter liquidity when US interest rates eventually increase.

China’s benchmark indexes, the CSI300 and the Shanghai Composite Index, both jumped more than 2 per cent, and hit the highest level in nearly seven years, on hopes that Beijing will unveil fresh stimulus to bolster the economy.

But gains in Hong Kong shares have been more subdued.

The Hang Seng index rose 0.9 per cent to 24,120.08, while the China Enterprises Index gained 1.2 per cent to 11,981.97 points.

The index measuring price differences between dual-listed companies in Shanghai and Hong Kong rose to a two-month high of 133, meaning mainland-listed companies are 33 per cent more expensive than their Hong Kong peers.

Analysts say the fading links between the two markets are the result of diverging economic prospects. China is easing monetary policy to bolster growth, while money may be lured out of Hong Kong as the US Federal Reserve gets closer to raising interest rates.

Among the most actively traded stocks on Hong Kong’s main board were Ali Pictures, down 1.9 per cent at HK$2.65; Suncorp Tech, up 5.2 per cent at HK$0.61; and Solartech International, up 21.2 per cent at HK$0.08.

Total trading volume of companies included in the HSI index was 1.7 billion shares.

Published on March 18, 2015
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