China Stocks Rise Most in a Week as Buyers Shift From Hong Kong
(Bloomberg) -- China’s stocks climbed the most in a week as mainland traders shifted investments back onshore, as Hong Kong’s benchmark declined soon after passing a key milestone.
The CSI 300 Index of firms listed in Shanghai and Shenzhen rose 1.5%, to the highest since Jan. 14, with material and industrial stocks leading gains. That came as Hong Kong’s Hang Seng Index was poised for a decline that would end a five-session advance, falling after it earlier passed 30,000 points for the first time since May 2019.
The pace of investment flowing from the mainland to Hong Kong via stock connects was slower Thursday after three straight days in which mainland traders net bought more than HK$20 billion ($2.6 billion) of locally-listed shares.
Having net purchased around $28 billion worth in January alone, mainland-based investors helped push the Hang Seng Index to the highest level relative to Shanghai stocks since June this week. For the first time since 2006, there is virtually no correlation between price changes in the CSI 300 Index and the Hang Seng China Enterprises Index, according to 30-day data. The two gauges tend to move in the same direction.
©2021 Bloomberg L.P.