Bull run in HK set to continue

Sustained capital inflows from mainland investors lift sentiment and trigger stock market frenzy, reports Xie Yu in Hong Kong.

Optimism remains high that a sustained rally in Hong Kong stocks will continue, despite the market correction on Tuesday, with analysts expecting further inflows of mainland funds to keep the market on the boil.

The dominance of the large United States-based investment banks, backed by billions of dollars of funds entrusted to them by foreign institutional investors, is facing a stiff challenge from mainland capital that is flowing into Hong Kong since trading resumed on April 8 after the Easter holiday break.