Stocks rally on news of Connect launch

Small cap stocks are expected to benefit most, but rise is limited by global uncertainties

Both the Chinese mainland and the Hong Kong stock markets saw a rally on Monday after the China Securities Regulatory Commission (CSRC) confirmed that the Shenzhen-Hong Kong Stock Connect will be launched next Monday, but global market uncertainties still held down performance, according to experts.

On Monday, the Shanghai Composite Index rose 15.05 points, 0.46 percent, to 3,277 and the Shenzhen Component Index increased 32.34, 0.29 percent, to 11,068.87. Hong Kong's Heng Seng Composite Index went up 107.12, 0.47, percent to 22,830.57 and the small-cap based Heng Seng China Enterprise Index jumped 85.31, 0.87 percent, to 9,875.54.