Hang Seng closes above 30,000 on mainland funding

Hong Kong’s Hang Seng stock Index jumped 2.41 percent on Monday, closing above the 30,000- point level for the first time since May 2019, with Tencent, NetEase and Hong Kong Exchanges and Clearing ( HKEX) all hitting fresh highs.

The rally was driven by continued funding from Chinese mainland- based traders taking long positions on promising internet and newenergy vehicle stocks.

The Hang Seng Index opened 0.78 percent higher at 29,677.3 points and quickly extended gains to test the 30,000- point level, its second attempt after surpassing 30,000 points intraday on Thursday when the benchmark passed the milestone level for the first time since May 2019.

Tencent soared 10.93 percent to close at a new record of HK$ 766.5 ($ 98.88), with its total market capitalization hitting more than HK$ 7.4 trillion.

That exceeded the combined market value of six major mainland banks including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank. Technology heavyweights including Semiconductor Manufacturing International Corp posted big gains during the day.

Shares of China Evergrande New Energy Vehicle Group were up almost 70 percent on a $ 3.35 billion share placement to fund its electric vehicle business.

Share of HKEX, the operator of the Hong Kong bourse, rose above HK$ 550 to hit a record level.

The HKEX announced on Friday the inclusion of eligible mainland shares listed on the STAR Market in Shanghai into the stock connect linking the Shanghai and Hong Kong markets, effective February 1.

The recent rally in the Hong Kong market has been underpinned by mainland investors’ growing risk appetite for premium stocks, especially mainland- origin technology and new- energy giants they are familiar with.

Net inflows of funds into Hong Kong market through southbound trading under the stock connect regime between the Hong Kong and mainland stock markets have continued to accrue over the past few weeks.