H shares gain most in two weeks in HK as buying resumes

Mainland stocks rebounded in Hong Kong, led by power companies, as mainland investors extended a buying spree following last week's holidays.

Hong Kong's markets were closed on Friday for a holiday, while those in the mainland were also shut on Thursday. The Shanghai Composite Index added 0.77 percent.

Net daily buying of Hong Kong equities through an exchange link with Shanghai reached the highest since April 2015 on Sept 9 as cheaper valuations and the wish to protect against a depreciating yuan lured investors. Dual-listed shares are 20 percent more expensive in the mainland than in Hong Kong.

"Mainland buying will probably continue in following months as concerns about a weaker yuan is rising," said Chen Hao, a strategist at KGI Securities Co in Shanghai.

"Low valuations of Hong Kong stocks also make them a preferred target by global investors."

CGN Power climbed 3.4 percent, extending Thursday's gain after the United Kingdom government approved Electricite de France SA's plan to build two nuclear reactors for 18 billion pounds ($24 billion) in southwestern England.

CGN Power is a unit of State-owned China General Nuclear Power Corp, which is due to provide a third of the finance for the project.

(China Daily 09/20/2016 page17)