Hong Kong shares rise to 2-year high on Chinese inflows

July 12 (Reuters) – Hong Kong’s benchmark stock index rose
for the third straight day on Wednesday to a two-year closing
high, bolstered by China fund flows and investors’ bargain
hunting for blue chips.

The market was firm even as Hong Kong’s second board for
start-ups fell to another record low and as investors braced for
a possible hawkish policy stance ahead of the Bank of Canada’s
upcoming policy meeting and Yellen’s testimony to Congress.

The Hang Seng index rose 0.6 percent, to 26,043.64,
while the China Enterprises Index gained 1.0 percent, to
10,517.37 points.

On Wednesday, Chinese investors used 22 percent of the daily
quota to buy Hong Kong stocks via the Shanghai-Hong Kong
Connect, as net inflows from the mainland has gradually
increased over the past month.

Chinese money was behind the surge in Sunac China,
whose shares touched a record high on Wednesday, on the back of
news the developer plans to buy Dalian Wanda’s tourism projects
for $9.3 billion.

Financial shares were firm, with Industrial and Commercial
Bank of China (ICBC) jumping 3.4 percent.

Hong Kong’s second board, the Growth Enterprise Market
continued to slide, falling 0.5 percent to a fresh
record low.

(Reporting by the Shanghai Newsroom; Editing by Jacqueline
Wong)

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