Hong Kong blue chips vaulted 1.3 percent on Monday amid near-record turnover and strong global equities, as investors chased more underperformers, sweeping up China Life and local lenders in a broad-based rally. More buying in shares of local real estate developers following last Friday's rally powered the Hang Seng property sub-index 1.2 percent to near-decade highs.
Blue chip conglomerate Hutchison Whampoa Ltd rallied to six-year peaks, while bourse operator Hong Kong Exchanges and Clearing Ltd, a key barometer of market sentiment, shot up to an all-time high.
"It's very bullish across emerging markets," said Alex Wong, director at Ample Finance Group. "It's not just a local phenomenon." South Korea shares struck a record peak while Taiwan reached a seven-year closing high. As ample funds continue to flow into global financial markets, Hong Kong should march higher in the near-term.
"We are likely to have a high of 23,000 points before we see any major correction," said Steve Cheng, associate director at Shenyin Wanguo. The benchmark Hang Seng Index cleared the 22,800 resistance level, ending at 22,817.43, just a whisker off its intraday high. The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, leapt 2.7 percent to a record 13,024.43.
Mainboard turnover was the second-highest ever at HK$102.7 billion (US $13.2 billion). China Life, the top market driver, tracked its Shanghai-listed shares to surge 6.3 percent to HK$30.55 after mostly drifting last week despite record-breaking rallies.
Similarly, laggard China Merchants Bank put on 8 percent to HK$26.35, having earlier set its highest level since its public share sale in September. Ping An Insurance (Group) Co of China Ltd raced up 3.4 percent to HK$57.40. Hutchison, the day's most traded stock after China Life, finished up 4.1 percent to HK$86.40.
Hong Kong Exchanges bolted 7.2 percent to HK$135.90 to a fresh record, helped by the recent string of massive turnover. Among local property developers, Sun Hung Kai Properties, jumped 1.7 percent to HK$99.45 after Merrill Lynch upgraded the stock to buy, citing the value generated by the developer's investment properties in China and Hong Kong. Sino Land jumped 1.8 percent to HK$16.64. Local lenders also advanced. Bank of East Asia, shot up 4.1 percent to HK$46.60 and BoC Hong Kong (Holdings) Ltd climbed nearly 2 percent to HK$19.34.