Hong Kong stocks rise to record as world-beating rally rolls on

The Hang Seng Index rose 1.8 per cent to 31,904.75 on Jan 16, exceeding the peak reached in October 2007.
The Hang Seng Index rose 1.8 per cent to 31,904.75 on Jan 16, exceeding the peak reached in October 2007.PHOTO: AFP

HONG KONG (BLOOMBERG) - Hong Kong's benchmark stock index closed Jan 16 at a record for the first time in more than a decade as a world-beating rally showed little signs of waning.

The Hang Seng Index rose 1.8 per cent to 31,904.75, exceeding the peak reached in October 2007.

The gauge was still short of its all-time intraday high of 31,958.41.

Hong Kong's benchmark index has surged 11 per cent in the past month, with the gauge and the Hang Seng China Enterprises Index of Chinese stocks in the city ranking as the top global performers among major markets.

Gains have been so steep that the relative strength index, a technical indicator, is signaling to some traders that shares are overbought.

Tuesday's advance saw the Hang Seng Index finally complete its recovery from the global financial crisis - a process that took almost a decade, versus just four years for the US.

Hong Kong equities were held back by the bursting of the Chinese stock market bubble in 2015 and sporadic bouts of concern about a hard landing for China's economy.