The stock market rose more than 500 points in two days to reach a two-week high yesterday on higher expectations of an improved economy on the mainland.

The Hang Seng Index closed higher by 218 points to 21,743 yesterday, adding to the increase of 296 points on Wednesday.

The market rallied two days ago on speculation that the People’s Bank of China might cut the reserve requirement ratio for banks, Francis Lun Sheung-nim, the managing director of Lyncean Securities, said.