"Icing On The Cake" For Hong Kong Investors

Already-robust Hong Kong stocks get a lift from the WTO pact

Politicians may long debate whether China's deal with the U.S. to join the World Trade Organization is good or bad for the global economy. Investors have no doubts: They like it. In the three days after the Nov. 15 announcement, share prices in Hong Kong's benchmark Hang Seng index jumped 3.5%, to 14,704, the highest level in two years. "It's a catalytic event," says Mark Headley, managing director of Matthews International Capital Management in San Francisco. "It will force people to reassess investing in China."

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