Hong Kong stocks rise as more China inflows expected

jueves 16 de abril de 2015 04:11 GYT
 

April 16 (Reuters) - Hong Kong stocks rose on Thursday, as some analysts revised up their index targets in anticipation of fresh money flows from the mainland.

The Hang Seng index rose 0.4 percent, to 27,739.71, while the China Enterprises Index gained 1.7 percent, to 14,720.13 points.

"Investors should continue to build positions in Hong Kong due to its extremely low valuation, relative market isolation and significant underperformance compared with its Chinese comrades," Hong Hao, chief strategist with BOCOM International, wrote on Thursday.

HSBC said in a report that Chinese mutual funds could raise 500 billion yuan ($80.71 billion) from local investors to invest in Hong Kong.

Foreign investors are also jumping on board Hong Kong's stock market rally, signalling growing confidence that a bonanza sparked by China inflows is set to continue and could pull funds from other Asian markets.

Investment bank Jefferies lifted its target for the HSCE about 25 percent to 18,500 points. BOCOM's Hong recently raised its target for the HSCE to 19,000.

Among the most actively traded stocks on Hong Kong's main board were Ping Shan Tea, up 12.8 percent to HK$0.05 Junyang Solar, up 10.7 percent to HK$0.47 and GOME , down 2.9 percent to HK$1.99.

Total trading volume of companies included in the HSI index was 3.4 billion shares. (Reporting by Samuel Shen and Pete Sweeney; Editing by Richard Borsuk)