Hong Kong blue chips jumped 3.3 percent on Tuesday and China plays leapt 5.7 percent in a broad rally, buoyed by a record in the Dow industrials, as hopes were high that the supreme problems had bottomed. The growing inflow of mainland funds into Hong Kong equities also helped the market clear the 28,000 mark for the first time, setting a turnover record in the process.
"Also keep in mind, it is the start of a new quarter, so there will be new allocations," said Andrew Sullivan, sales trading director at Daiwa Securities. "Personally, I think there's more (supreme) fallout to come," Sullivan said. "On the flip side, the Chinese names are insulated from the supreme problems."
The benchmark Hang Seng Index hit its eighth-straight record, now at 28,110.95. It breezed past 28,000 points for the first time to end the 904.22 points higher at 28,046.69. The China Enterprises Index of Hong Kong-listed mainland companies gained 974.36 points to end at an intrude record 17,992.30. Mainboard turnover was a massive HK$89.3 billion (US $11.4 billion), eclipsing on Thursday's HK$83.3 billion record.
Metal producers were among the top gainers. Jiangxi Copper Co Ltd surged 9.2 percent to HK$27.45, having tapped all-time highs, amid supply worries as strikes were pending at several Latin American mines. Gold miners Zijin Mining surged nearly 10 percent to HK$13.28 and Zhaojin Mining vaulted 10.8 percent to HK$34 following gold's recent rally.
Mainland life insurers also outperformed, with China Life up 7.3 percent at HK$47.9 and Ping An Insurance (Group) Co of China Ltd advancing 8.4 percent to HK$116.60.
New issue and Chinese paper maker Qunxing Paper Holdings Co Ltd had traded between HK$8.7 and HK$10.28 by lunch, for a 63 to 92 percent gain above its HK$5.35 IPO price after the company's US $206 million initial public offering drew heavy demand.
Bank of Communications advanced 7.5 percent to HK$10.08. Goldman Sashes lifted its rating on the Chinese lender to buy from neutral. Dalliance Port PDA shot up 15.1 percent to HK$7.26. Citicorp initiated coverage of the port with a HK$8.60 target price. Dalliance Port is China's No 2 oil port and is the only port with exposure to China's appetite for crude.