Hong Kong stocks gain on mainland buying; tech hits record high

Hong Kong shares climbed more than 2% on Monday as mainland investors continued to buy into the market via the Stock Connect, with tech and material stocks leading the pack. ** The Hang Seng index closed 2.4% firmer at 30,159.01, while the China Enterprises Index also gained 2.4% to 11,960.49.

Hong Kong shares climbed more than 2% on Monday as mainland investors continued to buy into the market via the Stock Connect, with tech and material stocks leading the pack.

** The Hang Seng index closed 2.4% firmer at 30,159.01, while the China Enterprises Index also gained 2.4% to 11,960.49. ** Leading the rally, the Hang Seng tech index jumped 4.5% to a record high, while the Hang Seng materials index rose 2.8%.

** The top gainer in the Hang Seng was Tencent Holdings Ltd , which gained 10.93%, while the biggest loser was China Unicom Hong Kong Ltd, which closed 3.35% lower. ** Mainland investors on Monday purchased a net HK$20 billion worth of Hong Kong stocks via the Stock Connect linking mainland and Hong Kong, according to Refinitiv data.

** "Compared with other markets, Hong Kong stocks remain relatively cheap," said Kenny Ng, an analyst at brokerage Everbright Sun Hung Kai in Hong Kong. ** "More and more large U.S.-listed Chinese companies would also seek listings in Hong Kong, increasing the attractiveness of the city's stock market," he added.

** He, however, urged caution, saying there might be a correction in the coming weeks after recent strong gains. ** Chinese online video company Kuaishou Technology is aiming to raise $4.95 billion to $5.42 billion in an initial public offering that will be the largest in Hong Kong for more than a year, according to a term sheet reviewed by Reuters.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.85%, while Japan's Nikkei index closed 0.67% firmer. ** The yuan was quoted at 6.4765 per U.S. dollar at 0815 GMT, 0.1% firmer than the previous close of 6.483.

** At close, China's A-shares were trading at a premium of 34.28% over Hong Kong-listed H-shares.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)