Hong Kong's benchmark index jumped 2.2 percent by midday Monday as shares of the local bourse operator soared 11.5 percent.

At midday, the blue chip Hang Seng Index was 563.41 points, or 2.18 percent, higher than Friday's close at 26,407.19. In morning trade, the index hit a new high of 26,409.91.

"I don't know how to make projections for now," says Peter Lai at DBS, referring to index performance. "It's crazy, as there should be consolidation after huge gains."

Lai added any corporate warnings for the third quarter in U.S. may dampen sentiment and trigger a major correction in Hong Kong.

Local bourse operator Hong Kong Exchange & Clearing added 11.5 percent to HK$244.40 by midday on hopes of potential merger and acquisition plans and fund flows under China's Qualified Domestic Institutional Investor program. The scheme allows approved Chinese banks to invest in foreign stocks and equity-linked products on behalf of clients.

Shares in Hong Kong Exchange & Clearing rose as much as 13.3 percent from Friday before dropping back a little by the end of the morning.

Investors are also keeping a close watch on a possible deal between Cathay Pacific Airways Ltd. and Air China to take in a stake in China Eastern Airlines.

The 'A' listing of Swire Pacific, parent company of the Cathay Pacific, gained 0.8 percent by midday. Air China and Cathay Pacific shares have been suspended from trading.

Turnover totaled HK$77.06 billion (US$9.91 billion; euro7.02 billion) at midday.

                                                                                                               Source: Forbes.com