Hong Kong shares close at highest in more than 5 mths after China move helps banks

HONG KONG, June 10 Tue Jun 10, 2014 4:09am EDT

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HONG KONG, June 10 (Reuters) - Hong Kong shares finished at their highest in more than five months on Tuesday, tracking strong gains in the mainland after China detailed which banks would benefit from a cut of required reserves ratios.

The Hang Seng Index was up 0.9 percent at 23,315.74 points, while the China Enterprises Index of the leading offshore Chinese listings in Hong Kong gained 1.1 percent. Both indexes closed at their highest levels since Jan. 2.

Chinese banks outperformed after the People's Bank of China (PBOC) late on Monday announced cuts in the levels for banks that have sizable loans to the farming sector and small- and medium-sized firms.

Hong Kong-listed Chinese brokerages were also strong, thanks to the resumption of initial public offerings (IPOs) in mainland markets after a four-month hiatus.

CITIC Securities climbed 3.1 percent while Haitong Securities gained 2.4 percent.

Chinese internet giant Tencent Holdings rose 2.6 percent. (Reporting by Grace Li; Editing by Richard Borsuk)

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