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Hong Kong stocks rise the most in 6 weeks

Hong Kong stocks had their best day in nearly six weeks on Monday, led by IT and financial shares, as investors welcomed a plan for a new board to attract “new economy” listings – which would benefit investment banks and put vigour in the tech sector.

The Hang Seng index rose 1.2 percent, to 25,924.55, while the China Enterprises Index gained 1.3 percent, to 10,520.80 points.

The Hong Kong stock exchange unveiled a long-awaited proposal for a new stock listing board on Friday that will offer special voting rights and waive profitability requirements, in a drive to attract firms that typically choose New York over the Hong Kong bourse.

The proposal for a third board for “new economy” companies would let Hong Kong Exchanges and Clearing (HKEX) make a play for secondary listings from Chinese firms such as Alibaba Group and Baidu Inc. They were drawn to New York due to less stringent rules on profitability and share structures.

Technology stocks rose sharply on Monday, with an index tracking the sector up roughly 2 percent. Chinese tech heavyweight Tencent gained 2.3 percent.

The financial sector rose 1.3 percent, with shares HKEX up nearly 3 percent.

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