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Hong Kong: Shares have biggest one-day gain since December 2011
[HONG KONG] Hong Kong stocks rose sharply for a second day on Wednesday, with the benchmark Hang Seng index posting its biggest one-day percentage gain in nearly four years.
The Hang Seng index rose 4.1 per cent, to 22,131.31, while the China Enterprises Index, which tracks Chinese companies listed in Hong Kong, gained 5.2 per cent, to 9,975.53 points.
It was the HSI's biggest gain since Dec 1, 2011.
Analysts said that after the Hang Seng's nearly 30 per cent slump from its April peak, relatively low valuations are attracting bargain hunters, with the rebound also helped by short-sellers rushing to cover short positions to avoid losses.
Investor sentiment was also aided by signs that China's efforts to stem further slides in mainland stocks may be paying off, with Chinese shares climbing a second straight day.
Hong Kong stocks rose across the board, with HSI's volume also recovering, tripling from that of Tuesday.
Cheung Kong Infrastructure Holdings Ltd (CKI) jumped 4.2 per cent, after the firm, part of billionaire Li Ka-shing's business empire, offered on Tuesday to buy all the shares it does not already own in Hong Kong utility Power Assets Holdings Ltd in an all-stock transaction valued at US$11.6 billion. Power Assets surged 5.8 per cent.