SHANGHAI - China and Hong Kong stocks surged on Monday morning after regulators announced that the long-awaited pilot programme allowing cross-border investment between the Shanghai and Hong Kong stock markets will launch on November 17.
The CSI300 index rose 27.67671 points, or 1.11 per cent, to 2,529.8297 in early trade, while the Shanghai Composite Index gained 18.45701 points, or 0.76 per cent, to 2,436.628.
The Hang Seng index rallied 524.61 points, or 2.23 per cent, to 24,074.85.
Mainland indexes had seen surging volumes in the run-up to the announcement, as investors poured money into long-neglected financial stocks on mainland exchanges, expected to be the primary recipients of investment from Hong Kong.
That helped push up the CSI300 financial services index up over 10 per cent since Oct 27, led by banks and mainland brokerages.
The move has also helped close the valuation gap between dual-listed companies, which are among the stocks eligible to be traded under the pilot's regulations. The A-H share index stood at 99.05 in morning trade, with 100 representing parity.