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Hong Kong: Shares rise to 21-month highs, shrug off cyber threat
[HONG KONG] Hong Kong stocks rose for the sixth straight session to fresh 21-month highs on Monday, as investors shrugged off threats posed by a global cyber security attack, a missile test by North Korea and weak US data.
Sentiment was aided by signs of steady money flows from mainland China, and stabilisation in the China market, where main stock indexes rebounded for the third straight day as the government moved to sooth market fears of tighter regulation.
The Hang Seng index rose 0.9 per cent, to 25,371.59, while the China Enterprises Index gained 1.6 per cent, to 10,450.35 points.
On Monday, Chinese investors used up 22 per cent of the daily quota under the Shanghai-Hong Kong Stock Connect to buy Hong Kong stocks, signalling continuous southbound money flows.
UBS pointed to signs of mainland Chinese investors diversifying away from domestic exposure.
"We have observed southbound investors showing increased interest in non-Chinese HK shares, which may indicate their intent to diversify and avoid the domestic spill-over effect," UBS strategist Gao Ting said.
Most sectors rose, with financial shares among the biggest gainers.