HONG KONG: Hong Kong stocks climbed on Monday morning, a four-day weekend after returning from Shanghai to catch up with markets.
The Hang Seng Index HSI, +1.89% gained 1.9% after recent reports said China’s central bank had changed its rules to allow deposits from non-bank financial institutions to count as reserves, a measure aimed at increasing lending and boosting growth.
The Hang Seng China Enterprises, tracking mainland-China-based companies, advanced 4.1%. Mainland Chinese banks rallied across the board, with China Merchants Bank Co. 3968, +7.38% CIHHF, +4.09% 600036, +1.17% soaring 7.1%, China Minsheng Banking Corp. 1988, +5.56% 600016, -0.73% CMAKY, +0.48% leaping 6.2%, Bank of Communications Co. 3328, +4.17% BKFCF, +16.90% 601328, +0.32% up 4.3%, Industrial & Commercial Bank of China Ltd. 1398, +3.30% IDCBF, -1.36% 601398, +0.87% rising 3.9%, and Bank of China Ltd. 3988, +2.61% BACHY, +3.71% 601988, +1.05% climbing 3.8%.
Chinese insurers also posted siginificant gains, with China Pacific Insurance Group Co. 2601, +12.05% 601601, +7.62% CHPXF, +0.00% surging 12.3%. Likewise, China Life Insurance Co. 2628, +7.84% LFC, +7.02% cracked 7.1% higher, and Ping An Insurance Group Co. 2318, +7.53% PNGAY, +4.26% 601318, +6.02% improved by 6.5%. Citic Securites Co. Ltd. tacked on 8.8%, after the firm said it would issue no more than 1.5 billion new shares in Hong Kong to raise an estimated 30 billion Hong Kong dollars ($3.9 billion). Over on the mainland, the Shanghai Composite Index SHCOMP, +0.90% headed for a third straight day of gains, rising 1.3%.
