Hong Kong: Stocks surge 5.43% to new seven-year high

[HONG KONG] Hong Kong's benchmark Hang Seng Index opened nearly 3 per cent higher on Thursday to fresh seven-year highs, sustaining an upward momentum fueled by hopes of fresh money inflows from mainland investors seeking arbitrage opportunities.

The Hang Seng China Enterprises Index of Hong Kong-listed mainland companies quickly hit a fresh four-year high.

There are signs of rapidly-rising Chinese interest in Hong Kong stocks, as mainland investors rush to seek arbitrage profits from the massive valuation gap between the two markets, amid signs of regulatory support.

On Wednesday, Chinese investors, for the first time, used the entire 10.5 billion yuan (S$2.3 billion) daily quota in the Shanghai-Hong Kong Stock Connect buying Hong Kong stocks, boosting turnover under the cross-border investment scheme to a record.

REUTERS