Hong Kong stocks reached their highest level in more than four and a half years on Wednesday, with the benchmark Hang Seng Index skyrocketing almost 700 points to 27,826.91.

Buoyed by robust performances from the energy and technology sectors, the HSI gained 699.96 points, or 2.58 percent, extending its winning streak to a sixth straight day.

The Hang Seng China Enterprises Index — a barometer of Chinese mainland companies — rose 2.89 percent to close at 9,512.24 points, while the city’s technology stocks gauge — the Hang Seng Tech Index — climbed 2.53 percent to 5,900.16 points.

Newly listed Busy Ming Group, one of the mainland’s largest snack chains, made a strong debut, reaching HK$445 ($58.31) per share at its peak and closing its first trading day with a gain of nearly 70 percent.

Aluminum product manufacturer China Hongqiao Group notched a historic high, surging 7.31 percent to HK$40.22, while oil and gas distributor PetroChina added 4.99 percent, reaching its highest in three years.

Kinger Lau, chief China equity strategist at Goldman Sachs, said valuations of Hong Kong and A-share stocks have returned to their historical average levels, with this year’s market returns boosted primarily by profits.

He noted that the massive capital inflow from the mainland was the main driver of the Hong Kong stock market’s growth last year. The strategist predicts the trend will continue this year and the southbound capital will hit a new high of $200 billion.

Eying the strong performance of Hong Kong’s stock market, asset management firms are rolling out more innovative ETFs to capture growth opportunities.

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The Galaxy Bosera MSCI China ASEAN Economic Linkage Select Index ETF, co-managed by Bosera Asset Management (International) and China Galaxy International Asset Management (Hong Kong), was unveiled on Wednesday to mirror the performance of the MSCI China ASEAN Economic Linkage Select Index.

It selects Hong Kong-listed stocks eligible for southbound trading under the Stock Connect program and with strong economic exposure to Singapore, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Large- and mid-cap companies listed in five ASEAN countries with high exposure to the Chinese mainland and the Hong Kong Special Administrative region are also included.  

Wang Sheng, chairman of the China Galaxy Securities, said: “As the first equity ETF in Hong Kong focusing on fundamentally strong companies in both China and ASEAN, this product offers an innovative tool for domestic and international investors to participate in the Belt and Road Initiative.”

He added that the ETF’s launch fully demonstrates Hong Kong’s pivotal role as an international financial center.

Hong Kong is ramping up efforts to propel its “international financial center status to new heights”, according to Financial Secretary Paul Chan Mo-po.

Speaking at a forum on Monday, Chan pledged that the SAR will continue to strengthen the competitiveness and appeal of its stock market.

“It (Hong Kong Exchanges and Clearing Ltd) is also working on enhancements to the issuance framework for structured products, and exploring regional cooperation in products such as ETFs,” Chan added.  

Contact the writer at gabylin@chinadailyhk.com