CHINA’S stocks posted their best daily gain in seven weeks yesterday, buoyed by expectations that a trading link between Hong Kong and Shenzhen stock markets would be launched before the year-end.

    The market was also underpinned earlier by comments from President Xi Jinping on the economy and the government’s proposal of its 13th five-year plan for economic and social development between 2016 and 2020.

    The optimism over the stock connect program continued even after Hong Kong Exchanges and Clearing Ltd. clarified that the plan was still subject to regulatory approval.

    The CSI300 index of the largest listed companies in Shanghai and Shenzhen surged 4.7 percent to 3,628.54, while the Shanghai Composite Index jumped 4.3 percent to 3,459.64 points. Both indices chalked up their best daily rise since Sept. 16.

    “Sentiment was boosted by news of the Shenzhen Hong Kong stock trading connect, which could attract more money and fund injections to the market,” said Du Changchun, an analyst at Northeast Securities in Shanghai.

    But Du warned that the high valuation of small-cap stocks may curb the upside for stocks.

    Open interest also surged to their highest since late August, suggesting traders were hunting for positive news for the market after a crash since mid-June.

    Shenzhen’s startup board ChiNext soared nearly 6 percent. The CSI300 information technology sector index surged 6.4 percent and the telecommunication index advanced 5.1 percent. (SD-Agencies)