Hong Kong: Shares gain on China's market rebound and relief over GDP data

[HONG KONG] Hong Kong shares rose on Tuesday after mainland indexes rebounded on comments by China's securities regulator that it was not trying to suppress that market's rally.

Market talk that regulators took actions that led to Monday plunges on mainland markets "is not consistent with facts" said Deng Ke, spokesman for the China Securities Regulatory Commission (CSRC).

Also on Tuesday, investors were relieved that China's fourth quarter growth data was not as bad as some expected. Still, the economy grew at its slowest pace in 24 years in 2014.

The Hang Seng index rose 0.9 per cent, to 23,951.16 points, while the China Enterprises Index gained 2.3 per cent, to 11,741.78 points.

Among the most actively traded stocks on Hong Kong's main board were Bank Of China, up 2.6 per cent at HK$4.29 Yat Sing Holding Ltd, up 50.0 per cent at HK$0.90 and ICBC, up 2.4 per cent at HK$5.58.

Chinese investment flowing from Shanghai into Hong Kong through the mutual market access pilot programme took up 0.63 billion yuan (US$101.35 million) of the 10.5 billion yuan daily quota.

Total trading volume of companies included in the HSI index was 1.6 billion shares.

REUTERS