Buoyant market: The Hang Seng Index closed at 21,595 today, up 5.93% on Friday.

Hong Kong financial officials and Hong Kong Exchanges & Clearing have hailed the State Administration of Foreign Exchange's decision of allowing individual investors in the Tianjin Binhai New Area to invest directly in Hong Kong's securities market.

The news prompted the Hang Seng Index to close 1,208 points, or 5.93%, higher than last Friday, at 21,595. The turnover on the Mainland Board was $105.3 billion.

Financial Secretary John Tsang said the scheme is in line with the Mainland's policy objective of allowing orderly outflow of funds.

"The use of Hong Kong's financial platform for Mainland individuals to invest in securities offshore is a clear demonstration of the mutually-assisting, complementary and inter-active relationship between the financial systems of the Mainland and Hong Kong. It will help to enhance the status of Hong Kong as an international financial centre," he said.

Monetary Authority Chief Executive Joseph Yam said the authority will work with Mainland authorities to strengthen the links and interaction of the financial markets of the two places, increasing their overall size and efficiency.

HKEx said Hong Kong is an open and free market where securities trading is fair and orderly, adding it welcomes investors from all over the world as long as they comply with the rules of their place of residence for overseas trading before investing in Hong Kong.

HKEx said the quality investment instruments in its market are attractive to Mainland investors, whose investments in the Hong Kong market will help narrow the price gap between Hong Kong-listed H shares and the Mainland-listed A shares, and will help foster the healthy development of both markets.