Hang Seng Index breaks 22,000 on hot money surge
Market records third straight month of gains as HKEx increases size of share offering
The Hang Seng Index crossed the 22,000-point level yesterday as market sentiment continued to strengthen amid an influx of hot money.
The index rose 107.5 points, or 0.49 per cent, to close at 22,030.39. With that, the index has risen 1.8 per cent in November, making it the third straight month of gains.
Brokers said monetary easing policies in the US and Europe in September had led to a steady inflow of hot money into Hong Kong. The Hong Kong Monetary Authority on Thursday had to sell HK$8.85 billion for US dollars to weaken the local currency as it again hit the HK$7.75 upper limit of the trading band.
Riding the tide, Hong Kong Exchanges and Clearing increased the size of its first share offering in 12 years to US$1 billion, from US$800 million it had initially planned on Thursday.
The exchange plans to sell 65.7 million new shares, representing 5.71 per cent of its enlarged issued capital, at HK$118 per share - a 5.4 per cent discount on its closing price on Thursday.
