Hong Kong stocks climb on sustained mainland demand

Hong Kong stocks ended higher on Tuesday, underpinned by consumer and industrial firms, as mainland investors continued to pour money into the Asian financial hub. ** The Hang Seng index rose 1.2%, to 29,248.70, while the China Enterprises Index gained 1.4%, to 11,609.02.

Hong Kong stocks ended higher on Tuesday, underpinned by consumer and industrial firms, as mainland investors continued to pour money into the Asian financial hub.

** The Hang Seng index rose 1.2%, to 29,248.70, while the China Enterprises Index gained 1.4%, to 11,609.02. ** Leading the gains, the Hang Seng consumer discretionary index and Hang Seng industrials index closed up 3.2% and 4.3%, respectively.

** Mainland investors on Tuesday bought a net HK$17 billion worth of Hong Kong stocks via the Stock Connect linking mainland and the Asian financial hub, extending their buying spree. ** In January, their southbound purchases totalled HK$310 billion, the highest on a monthly basis, according to HKEX.

** More mainland funds will be attracted to Hong Kong stocks whose valuations remain lower than those of A-share market, U.S. and European markets, Guosen Securities (HK) noted in report. ** The brokerage said Hong Kong-listed mainland companies were expected to post solid earnings thanks to China's economic recover.

** Sentiment also got a boost as China's central bank, the People's Bank of China (PBOC), injected liquidity, easing worry over persistently tight liquidity. ** China's short-term money rates eased to two-week lows, as signs of liquidity tension in the interbank money markets started to fade. The PBOC injected a net 78 billion yuan ($12.08 billion) into money markets.

** Adding to market optimism, China reported the fewest new COVID-19 cases in a month as imported cases overtook local infections.