Hong Kong shares snapped three days of losses to close higher on Tuesday as investor sentiment recovered after several private equity funds said the slump on the previous trading days provides a good chance to get back into the stock market.
The benchmark Hang Seng Index rose 283.05 points, or 1.09 percent, to close at 26,250.03, after trading between 25,885.66 and 26,470.44.
Turnover totaled 155.87 billion HK dollars (about 20.11 billion U.S. dollars) compared with 186.13 billion HK dollars the previous trading day.
The Hang Seng China Enterprises Index increased 286.57 points, or 2.26 percent, to close at 12,981.23. Four sub-indices all closed higher, with the Property sub-index rising the most by 1.35 percent, followed by the Finance 1.23 percent, the Utility 1.01 percent and the Commerce and Industry 0. 85 percent.
Mainland-based companies led the increases. China Merchants Bank rose 4.63 percent to close at 22.6 HK dollars. Industrial and Commercial Bank of China, the world's biggest bank of market value, edged up 0.98 percent to end at 6.16 HK dollars. Bank of Communications gained 4.12 percent to 8.08 HK dollars. Legend Holdings, which made its debut in Hong Kong on Monday, jumped 4.07 percent to end at 10.74 HK dollars. Banking giant HSBC, which accounts for the largest weighting of the Hang Seng Index, fell 0.14 percent to 70.15 HK dollars, while its local unit Hang Seng Bank closed up 0.46 percent to 151.5 HK dollars.
Local bourse operator HKEX lost 0.51 percent at 273.6 HK dollars. Local developers Hang Lung Properties added 0.22 percent to 23. 05 HK dollars. Henderson Land, another major developer in Hong Kong, increased 1.43 percent to 53.05 HK dollars. CKH Holding, a powerful HK-based developer controlled by billionaire Li Ka-shing, rose 1.33 percent to 113.9 HK dollars.
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