Hong Kong: Shares close up after yuan conversion limits scrapped

[SHANGHAI] Hong Kong shares rose on Wednesday, lifted by Chinese financials after the city's central bank scrapped the daily yuan conversion limit for local residents ahead of the launch of a landmark scheme linking Hong Kong's stock market with Shanghai's.

The move is effective on Monday, when the so-called stock connect scheme begins trading, giving global investors easier access to China's US$3.9 trillion stock market and mainland investors the opportunity to buy stocks in Hong Kong.

The Hang Seng index rose 129.9 points, or 0.6 per cent, to 23,938.18, while the Hong Kong China Enterprises Index gained 77.7 points, or 0.7 per cent, to 10,729.76.

Among the most actively traded stocks in Hong Kong were Bank Of China Ltd, up 1.05 per cent; Hybrid Kinetic, up 27.8 per cent and mainland electronics retailer Gome, down 6.6 per cent.

The total volume of shares traded in Hong Kong was 74.39 billion shares.

REUTERS