HONG KONG: China and Hong Kong shares surged more than 1 percent on second consecutive day on Wednesday, on hopes of more favourable policies from the Chinese government, with transportation stocks leading gains for mainland equities.
At midday, the Shanghai Composite Index was up 1.4 percent to the highest level in two weeks, 2,370.1 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings gained 1.2 percent.
In Hong Kong, the Hang Seng Index advanced 1.4 percent to 23,839.22 points, its highest level in more than a month. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 1.8 percent.
Transportation-related stocks led gains on the mainland. China Eastern Airlines Corp Ltd and COSCO Shipping Co Ltd both climbed 9.9 percent, while China Shipping Development Co Ltd shot up by the 10 percent daily limit.
Hong Kong shares tracked strength in the China market, with casino stocks leading the rise after Wynn Macau posted better-than-expected quarterly earnings, fuelling hopes that the gambling market has stabilised.
Also providing a boost was anticipation the U.S. Federal Reserve would reinforce its willingness to wait a long while before hiking interest rates at a meeting later on Wednesday.
Wynn Macau rose 4.1 percent to its highest in seven weeks. Galaxy Entertainment climbed 6.3 percent and Sands China surged 4.8 percent.
Shares of Ping An Insurance rose 2.9 percent in Hong Kong after China’s second-largest insurer by market capitalisation reported third-quarter profit almost doubled. China Life rose 2.5 percent.
