HONG KONG: Hong Kong stocks climbed Tuesday morning, catching up to gains Monday in Shanghai, when Hong Kong was on holiday. The Hang Seng Index HSI, +1.54% advanced 1.4%, with the mainland-China-tracking Hang Seng China Enterprises HSCEI, +3.15% up 2.8%. On the mainland itself, the Shanghai Composite Index SHCOMP, +1.64% crept higher in choppy trading, up 0.4%. The index rallied 3.4% in the previous day, hitting a new seven-year high, bolstered by news that China plans to launch in July a mutual-fund recognition program between Hong Kong and mainland China, which will allow cross-border sales of funds between the two markets. Meanwhile, markets also got a boost from a state media report on Monday, which said China has developed a plan to reform the national pension fund system, allowing possibly hundreds of billions of dollars from the fund to invest in domestic stock markets. Among market movers in Hong Kong, Chinese broker China Everbright Ltd. 0165, +8.78% soared 8%, bourse operator Hong Kong Exchanges & Clearing Ltd. 0388, +5.52% spiked 4.4%, and brokerage firm Haitong Securities Co, Ltd. 6837, +4.36% jumped 3.9%. Major Chinese banks also rose sharply, with China Merchants Bank Co., Ltd. 3968, +4.66% CIHHF, +4.20% climbing 4%, Bank of Communications Co., Ltd. 3328, +3.59% BKFCF, +0.52% gaining 3.1%, Bank of China Ltd. 3988, +2.85% BACHY, +3.19% up 2.7%, and China Citic Bank Corporation Ltd. 0998, +2.49% CHCJY, -10.01% higher by 2.3%.
