Hong Kong shares finished firmer on Tuesday, with the benchmark index rising for a fourth consecutive day as investors continued searching for high yields.
Hong Kong shares finished firmer on Tuesday, with the benchmark index rising for a fourth consecutive day as investors continued searching for high yields. The mood in the Hong Kong market has been buoyed by a flood of capital pouring in from the mainland since last week, as investors there actively hunt for yields in a low-interest rate environment.
Chinese investors are also trying to get a head start on buying Hong Kong shares ahead of the expected November launch of a cross-border investment link between Shenzhen and Hong Kong. Some analysts pointed out that investors have become cautious after the key index hit a series of one-year highs in recent days.
The Hang Seng index rose 0.6 percent, to 23,787.68, while the China Enterprises Index gained 1.1 percent, to 9,938.39 points.
Top gainers on the Hong Kong market were the materials sector and the industrial sector with the subindexes rising 2.0 percent and 2.1 percent, respectively. The southbound quota for the Shanghai-Hong Kong Stock Connect, currently set at 10.5 billion yuan, utilised 5.0 billion yuan, or 47.9 percent on Tuesday, posting the biggest daily inflow since April 24.