Mainland Inflows Push HSI Near 30,000

Buying sprees from investors across the border sent Hong Kong shares to their highest levels in 20 months on Tuesday, while sentiment in the region was also boosted by the pace of recovery in the world’s second-largest economy.

The Hang Seng index soared as many as 985 points to 29,848 before giving back some of the gains to finish 779 points, or 2.7 percent higher, at 29,642.

Turnover swelled to a record HK$301.6 billion dollars – a fifth of which, or HK$62.8 billion – came from the north as mainland investors continued to pile into Hong Kong stocks.

Several blue-chip companies reached record highs.

Hong Kong Exchanges and Clearing shot above HK$500 for the first time, reaching a new peak of HK$525, before finishing almost 4 percent higher at HK$501.

Sunny Optical peaked at HK$225.40, before closing up 7.9 percent at HK$221.

Meituan, Anta Sports and AIA also hit new highs, adding 4.9 percent, 9.4 percent and 4.4 percent respectively.

But heavyweight Tencent bucked the trend to end 0.3 percent lower after touching a historic high of HK$673.5.

Markets across the border finished in the red. The Shanghai Composite Index retreated 0.8 percent, while the blue-chip CSI300 index fell 1.5 percent. The Shenzhen Composite index declined 1 percent.

Elsewhere in Asia, a surge in auto-related stocks drove the Kospi in South Korea up 2.6 percent. Japan’s Nikkei climbed 1.4 percent. Taiwan jumped 1.7 percent. Australia gained 1.2 percent on optimism that coronavirus restrictions in Queensland would be lifted. Singapore was also in positive territory.