HONG KONG: Hong Kong shares rose on Wednesday but ended off the highs of the day amid talk of China's sovereign wealth supporting banking shares on the mainland market.
The Hang Seng index closed up 1 percent at 18,329.5 although trunover eased slightly from Tuesday. The China Enterprises index of top locally listed mainland firms rose 2.1 percent.
On the mainland, the Shanghai Composite ended up 3 percent at 2,420 in its biggest single-day gain in about a year.
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Chinese financials continued to take centre stage and were the main drivers of the rally on Wednesday. China Construction Bank rose 2.5 percent providing the biggest boost to the Hang Seng index. ICBC rose 1.2 percent. Hopes that Chinese authorities would take steps to bolster confidence in beaten down financial shares received a boost earlier this week when Central Huijin, the domestic investment arm of the country's sovereign wealth fund, was upping its stakes in the "Big Four" Chinese banks.
Shares of Esprit Holdings slumped 7.5 percent but ended off their lows after a media report that the company exaggerated the number of its outlets in China, putting more pressure on the retailer that saw its annual profits slump nearly 100 percent.
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