The recently announced approval of the Shenzhen-Hong Kong Stock Connect, which will allow non-mainland investors to trade in shares listed on the Shenzhen Stock Exchange, will likely come with its own challenges.
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The Hang Seng Index added 0.45 per cent, or 104.36 points, to close at 23,266.70.
For the week, the CSI300 index edged up 0.2 percent, while the SSEC was roughly flat, inching down 0.1 percent.
The Hang Seng has rebounded almost 30 percent from its February low, sustained by the attractiveness of relatively cheap valuations and the desire of mainland investors to move more of their assets overseas as the yuan weakens.
The south-bound gush under the Shanghai Connect comes as mainland investors seek to front-run a similar cross-border link between Shenzhen and Hong Kong, expected to start in November.
Sept 2 Hong Kong stocks advanced to a fresh one-year closing high on Friday led by a burst of Chinese money into the city’s blue-chips at the fastest pace in almost 1-1/2-years. The CSI300 index rose 0.3 percent to 3,311.62 while the Shanghai Composite Index gained 0.1 percent to 3,065.52.
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Real estate shares were among the top losers with the subindex falling 4.1 percent by the end of the day.
