Stocks jump as investors bet on hot money inflows H shares in demand as yuan revaluation boosts earnings hopes for Chinese firms.

(From South China Morning Post)

Byline: markets report Fiona Lau

Trading volumes surged yesterday, pushing the Hang Seng Index up 166.32 points, or 1.14 per cent, to 14,786.46, as punters bid on speculative inflows into the market as a result of the yuan revaluation.

Hong Kong-listed China stocks were in particular demand, as investors bought on expectations that earnings of the mainland players would be boosted by the yuan's 2.1 per cent appreciation.

Turnover of the 37-stock H-share index amounted to $8.66 billion, or 27.2 per cent of market turnover. Turnover reached $31.84 billion - the third-highest level in a single day this year, and …