HONG KONG: Hong Kong equities have ended 1.30 per cent higher, tracking another rally in China and following news Greece has finally struck a bailout reform deal with creditors that keeps it in the eurozone.
The benchmark Hang Seng Index added 322.73 points to close Monday at 25,224.01 on turnover of $HK136.80 billion ($A23.80 billion).
“The market had started pricing in fears we’re going to see a terrible outcome from China and Greece but we’ve started feeling more optimistic now,” Koichi Kurose, Tokyo-based chief market strategist at Resona Bank, told Bloomberg News.
“Stock prices are reflecting hopes Greece will come to a resolution. China looks to have reached its lows.”
The HSI has now advanced more than seven per cent in three sessions as traders move back into the market, which had tanked in recent weeks with mainland Chinese stocks.
Shanghai plunged by a third in just under a month from its June 12 peak until authorities announced a batch of measures to prevent an all-out crash. Among measures announced were a police crackdown on short-selling and a ban on big shareholders and company executives from selling stock for six months.
Shanghai’s composite index added 2.39 per cent on Monday, meaning it has soared 13 per cent in the past three trading days. Also, more than 400 companies resumed trading after half the market was suspended over the past month to stop a market meltdown.
