September 27, 2016 / 8:22 AM / 2 years ago

Hong Kong shares rise over 1 pct, aided by Chinese money inflows

SHANGHAI, Sept 27 (Reuters) - Hong Kong shares rose more than 1 percent on Tuesday, recovering much of Monday’s drop and aided by further money inflows from mainland Chinese investors.

But investors were bracing for a drop in flows from China as the Shanghai-Hong Kong Stock Connect scheme will be suspended from Sept. 29 to Oct. 10 due to China’s National Day holiday.

The Hang Seng index rose 1.1 percent to 23,571.90 points, while the China Enterprises Index gained 1.2 percent to 9,746.56.

Nearly all sectors rose, with financial shares leading the gains.

Chinese investors bought 3.6 billion yuan ($539.90 million)of Hong Kong stocks on Tuesday via the Shanghai-Hong Kong Connect, sustaining the recent trend of strong southbound flows.

But the suspension of the cross-border scheme which starts on Thursday might have an impact on the market’s liquidity, as “Chinese money inflows has been an important factor behind the strong rally recently,” said Linus Yip, strategist at First Shanghai Securities Ltd. ($1 = 6.6679 Chinese yuan renminbi) (Reporting by the Shanghai Newsroom; Editing by Kim Coghill)

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