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Hong Kong: Shares rebound, helped by China gains

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[SHANGHAI] Hong Kong shares rose the most in one-and-a-half months on Tuesday, helped by a rebound in Chinese stocks as Shanghai's US dollar-denominated B shares stabilised following the previous day's sell-off.

The Hang Seng index rose 1.5 per cent to 23,388.37 points, while the China Enterprises Index gained 1.9 per cent to 9,722.75.

China's A-share market was dragged lower on Monday by a sudden late-afternoon slump in the B-share index amid yuan depreciation fears, which analysts said was driven mainly by fear rather than fundamentals.

The blue-chip CSI300 index rose 1.3 per cent to 3,321.33, while the Shanghai Composite Index gained 1.4 per cent to 3,083.88.

Hong Kong shares were also boosted by data showing Chinese banks lent far more than expected in September.

Chinese banks extended 1.22 trillion yuan (S$250 billion) in new loans last month, a three-month high and well above expectations, while money supply growth edged up, indicating the central bank is keeping policy accommodative to support economic growth.

Most sectors rose, with properties and construction and industrial stocks leading the gains.

Great Wall Motor jumped nearly 7 per cent to a near 10-month high, while China Overseas Land rose more than 5 per cent at one point.

REUTERS