Hong Kong stocks gain, H-shares hit 11-week high as banks shine
SHANGHAI, April 8 (Reuters) - Hong Kong shares climbed on Tuesday, bolstered by gains in market heavyweight Tencent, while strength in banking stocks pushed the China Enterprises Index to a 2-1/2-month high.
The Hang Seng Index closed up 1 percent at 22,596.97. The China Enterprises Index of the leading offshore Chinese listings in Hong Kong rose 1.6 percent to its highest closing level since Jan. 23.
Chinese banks listed in Hong Kong widened gains in the afternoon, mirroring increases on the mainland driven by investor enthusiasm for companies set to benefit from a new preferred shares scheme announced last month.
Shares in Industrial and Commercial Bank of China Ltd rose 2.5 percent and China Construction Bank Corp gained 2 percent.
Shares of tech giant Tencent rose 1.6 percent, regaining some ground after hitting a 10-week low the previous day. The stock has proved highly volatile over the past 10 weeks, registering 11 daily losses or gains of more than 4 percent since Jan. 24, amid investor concerns that the sector as a whole is over-valued.
Great Wall Motor Co Ltd soared 6.8 percent after Malaysian media reported that the company would be awarded a licence to set up a vehicle manufacturing plant in that country. (Reporting By Natalie Thomas; Editing by Chris Gallagher)
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