The benchmark Hang Seng Index (HSI) saw a strong rebound yesterday, soaring 1,515 points to 16,312 behind a boost in European markets.

The index yesterday opened with a 479 points leap following the British government's plan to inject 37 billion pounds into England's four largest banks - HBOS, Royal Bank of Scotland, Lloyds TSB and Barclays.

The HSI rebound quickened in the afternoon session as the European equity markets opened with 4 to 5 percent increases. That spurred the index to vault over the 16,000 mark when European governments, including France, Germany and Italy, reached a mutual consensus to bail out their failing financial systems.

As a result, the HSI increased 1,515.29 points, or 10.24 percent, to 16,312.16. Daily turnover was about HK$72.5 billion, while the Hang Seng Chinese Enterprises Index shot up 947 points to settle at 8,083.43.

The index had plummeted by more than 4,000 points over the past two weeks on fears that the US financial meltdown would spread to European regions, but yesterday's rebound reclaimed ground lost in the previous three trading days.

Index heavyweight HSBC rose 4.28 percent to HK$114.50, while China Mobile surged 12.65 percent to HK$74.80.

The climb propped up the shares of mainland banking and insurance stocks. Shares of China Life went up 16.07 percent to HK$26. Ping An rose 15.96 percent to close at HK$46.50.

China Construction Bank's shares gained 12 percent to HK$4.20, while ICBC surged 14.13 percent to HK$4.28. Bank of China settled at HK$2.86, up 12.15 percent.

Hong Kong property stocks underwent substantial growth, too. Sun Hung Kai Properties rose 13.50 percent to HK$66.40, while shares of Henderson Land Development were jacked up 15.62 percent to HK$27.75.

And shares of Hang Lung Properties were lifted almost 20 percent to HK$16.76.

Mainland energy stocks gained along with a rebound in the market. China Coal Energy increased 8.63 percent to HK$5.41. Shares of China Shenhua Energy ended at HK$15.20, increasing 11.76 percent.

Enlightening Securities and Futures Executive and Vice President Ricky Cheng said that the rescue packages of the European governments apparently soothed the market's anxious sentiment.

"The index will bounce back significantly to test 20,000 in the near future, given that some financial institutions have regained their lending confidence," Cheng said. "The long-term view of the index, however, depends on the sustainability of the relief measures."

(HK Edition 10/14/2008 page2)