Hang Seng Index advances to 11-month high after mainland funds invade market with record US$2.5 billion of purchases


Hong Kong stocks rose, lifting the market to the highest level in 11 months, on optimism mainland China funds will support local equities whipsawed by US sanctions.
The Hang Seng Index added 0.5 per cent to 28,037.51 at the break on Tuesday, heading for the highest close since January 22 last year. That puts the market within 1.1 per cent of erasing all the losses since China locked down Wuhan, the epicentre of Covid-19 outbreak, about a year ago.
The Shanghai Composite Index rose 0.8 per cent. It slumped 1.1 per cent in its biggest pullback in three weeks on Monday.
Mainland traders continued to pile into Hong Kong stocks after they bought a record HK$19.5 billion (US$2.5 billion) of the shares via the cross-border Stock Connect programme on Monday. They poured in another HK$5.5 billion so far on Tuesday, according to Bloomberg data.
China Mobile, China Unicom and China Telecom advanced by at least 4 per cent, extending gains on Monday on speculation mainland traders were buying the dip after a sell-off last week. The trio are now off-limits to US investors starting this week, banned under President Donald Trump’s November 12 executive order. Source: South China Morning Post

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