The Hang Seng Index climbed 0.6 per cent to 18,578.30 at the close on Monday, the highest level since September 4, after intraday moves were limited within a tight range. The Tech Index jumped 0.9 per cent, while the Shanghai Composite Index advanced 1.2 per cent after a five-day local holiday.
Tencent jumped 1.6 per cent to HK$370.20, gaming firm NetEase added 2.3 per cent to HK$160.70, while EV maker Li Auto surged 6.1 per cent to HK$117.80. Online travel agency Trip.com advanced 4.2 per cent to HK$419.20 and drug maker Wuxi Biologics rallied 6.4 per cent to HK$14.86.
The city’s benchmark index had advanced for 10 straight days to register the longest winning streak since 2018, as China’s supportive policy stance and cheap valuations lured global investors. The rally helped register a gain of over 24 per cent from the January lows, with a rise of over 20 per cent widely defined as a bull market.
Mainland investors scooped up over HK$5 billion worth of local shares on Monday, the biggest single-day purchase in over two weeks, according to Stock Connect data.
“One of the factors driving the upside has been a surge in southbound flows,” said Carlos Casanova, senior economist, Asia at Union Bancaire Privee in a note on Monday. “The Hang Seng Index greatly benefited from this relaxation in cross border rules, which essentially makes it easier for onshore investors to tap “safer” US dollar denominated assets in Hong Kong (the Hong Kong dollar is pegged to the US dollar).”
“It’s not surprising that onshore investors would want to plonk money in Hong Kong, as the Hong Kong dollar was one of few Asian currencies to avoid the sell-off, following a 4.5 per cent appreciation of the USD in 2024.”
Mainland visitor spending to exceed HK$2 billion in Hong Kong over break: minister
Mainland visitor spending to exceed HK$2 billion in Hong Kong over break: minister
The Japanese and Korean markets are out for holidays while Australia’s S&P ASX 200 Index jumped 0.7 per cent.