HK exchange shares up 11pc

Shares in Hong Kong's stock exchange rose more than 11 per cent on Friday a day after China unveiled a plan allowing cross-trading between the city and Shanghai's stock markets. China hopes cross-market trading will further open up its capital markets and promote the yuan as an international currency, while boosting trade volumes in the bourses of the southern Chinese city and in Shanghai. Shares of Hong Kong Exchanges and Clearing closed at HK$146 ($18.83) in the city's bourse, up by 11.54 per cent compared to Thursday, despite the benchmark Hang Seng index falling 0.79 per cent. Under the scheme announced on Thursday mainland investors will be able to trade up to 13 billion yuan (US$2.11 billion) daily in Hong Kong stocks, while Hong Kong dealers can buy and sell up to 10.5 billion yuan a day. The initial cap for the transactions has been set at 550 billion yuan and is subject to review.The China Securities Regulatory Commission said in a joint statement with the Securities and Futures Commission of Hong Kong the trial would begin in six months and enable dealers to invest in designated shares, according to a news agency.