Hong Kong stocks rise as inflows from China intensify

[SHANGHAI] Hong Kong's benchmark index finished higher on Thursday as fresh inflows from mainland China persisted, and as fears of a US interest rate hike this month faded.

The Hang Seng index rose 0.8 per cent to 23,919.34 points, while the China Enterprises Index gained 0.4 per cent to 10,008.21.

The Fed said overnight in its Beige Book report of anecdotal information that the US economy expanded at a modest pace in July and August.

But there was little sign that wage pressures are being felt beyond highly skilled jobs, which the Fed is looking for to push inflation higher.

Thanks to ongoing fresh inflows from mainland under the Shanghai-Hong Kong Stock Connect scheme, the indexes hit a series of one-year highs in recent days as investors seek to front-run a similar cross-border link between Shenzhen and Hong Kong, expected to be launched in November.

As of the close, some 5.2 billion yuan (S$1.05 million) or nearly half of the daily southbound quota of the Hong Kong-Shanghai Stock Connect had been used.

REUTERS