Bloomberg, (17/7) -- Hong Kong stocks advanced, with the benchmark index gaining a third day, after foreign investment in China rose and ahead of Federal Reserve Chairman Ben S. Bernanke’s policy report. The Hang Seng Index added 0.2 percent to 21,355.90 at the break in Hong Kong, with trading volume 41 percent lower than the 30-day average. The Hang Seng China Enterprises Index of mainland shares climbed 0.8 percent to 9,498.06. “The market is still waiting for major policy news from China but so far the growth rate isn’t that bad so I don’t think there will be significant changes in the short term,” said Ben Kwong, chief operating officer at brokerage KGI Asia Ltd. “If you look at recent market sentiment and investor risk appetite, people are less fearful of Fed tapering as they tend to believe it’s the result of a stronger U.S. economy.” The Hang Seng Index has rebounded 2.5 percent through yesterday, after posting its biggest monthly decline in a year in June, on speculation China may act to ease a deepening slowdown. The government this week reported 7.5 percent economic growth in the second quarter, down from 7.7 percent in the first three months of the year, as factory output weakened. China’s foreign direct investment rose 20 percent in June to $14.4 billion, the Ministry of Commerce said today. The monthly total was the highest in data going back to 1997 and the largest increase in more than two years. Ben S. Bernanke bolstered the rally last week after he backed sustained monetary easing. The central bank chairman will deliver his semi-annual monetary policy report to Congress starting today.
