Hong Kong stocks rise led by gains in banking, insurance sectors with tailwind from China’s recent policy support moves

The Hang Seng Index rose 1 per cent to 17,936 at 10am local time. The benchmark has risen about 20 per cent from a January low and is on the cusp of what is defined as bull-market territory. The Hang Seng Tech Index rose 1.5 per cent, while China’s onshore stock exchanges are closed for the week.

HSBC, the city’s biggest bank, rose as much as 3.3 per cent but was off highs at HK$68.95, still up 2.9 per cent on the day. Index heavyweight and tech giant Tencent rose 1.6 per cent to HK$352.60. It has the largest weightage on the Hang Seng Index. Insurance stocks were also higher with AIA rising 0.4 per cent to HK$58 and Ping An advancing 0.6 per cent to HK$36.15.

“Banks and insurance companies benefit from higher interest margins when rates are elevated,” said Nitin Dialdas, CIO at Mandarin Capital, who added that investment flows in the broad market were being driven by Beijing’s economic focus at a time when stock market valuations are cheap. “A shift is taking place from west to east,” he said.