HONG KONG (Thomson Financial) - Hong Kong shares opened sharply higher Wednesday after Wall Street's rebound and on hopes that China's program to allow its citizens to trade the city's stocks will push through.
US shares rallied Tuesday after Goldman Sachs said it won't incur significant losses from the troubled subprime mortgage market, while retail giant Wal-Mart reported a higher-than-forecast third quarter net profit.
'Market sentiment will be lifted by the performance of the US market overnight,' said Conita Hung, research head at Delta Asia Securities.
The Hang Seng Index was up 984.05 points or 3.5 percent at 28,787.40.
Investors also bought shares on optimism that Chinese citizens will be able to buy and sell Hong Kong shares in the coming months under a program dubbed the 'through train', after The Standard newspaper reported today that the scheme's implementation is on track.
'The 'through train' is not delayed or halted. Mainland officials are already studying the details of the policy,' the paper quoted Hong Kong Association of Banks chairman Peter Sullivan as saying. 'All preparatory work is still in progress and officials do not want to make an abrupt decision.'
The group and Hong Kong Monetary Authority chief executive Joseph Yam yesterday discussed the investment scheme with People's Bank of China deputy governor Su Ning in Shanghai and other officials, the report said.
The through train may be running by the first half of 2008, Hung said.
(1 US dollar = 7.80 Hong Kong dollars)
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