Hong Kong stocks extended its early gains and surged 475.93 points, or 3.75 percent, to close near the day's highest at 13,175.1 on Monday amid reports that the U.S. government could take as much as 25 percent to 40 percent of Citi group's stakes.
Turnover fell slightly to HK$39.58 billion(US$5.09 billion) from Friday's HK$39.76 billion(US$5.13 billion).
The benchmark Hang Seng Index recovered 78.79 points, or 0.62 percent, to open at the day's lowest 12,777.96.
The market sentiment was encouraged by reports that the U.S. government is in talks with Citi group on taking 25 percent to 40 percent of the financial institution, lifting the index by as much as 508.81 points, or 4.01 percent, to the day's peak 13,027.98.
The index softened a little bit to close at 13,175.1, up 475.93 points, or 3.75 percent.
Market giant China Mobile, the country's largest mobile phone operator, was the market's major driving force. China Mobile advanced 5.06 percent to HK$71.65, boosting the index by 90.18 points alone.
Another market heavyweight HSBC, which accounts for the largest weighting of the index, added 0.91 percent to HK$55.3.
Hong Kong Exchange and Clearing Ltd., the market's sole operator, bounced 2.35 percent to HK$65.4.
China's banks and insurance companies were also major contributors to the market's gains.
China's largest lender ICBC rose 2.45 percent to HK$3.34. Bank of China, the country's second largest bank, gained 1.9 percent to HK$2.15. China Construction Bank surged 5. 31 percent to HK$3.97. Bank of Communications rallied 3.33 percent to HK$4.96. China Merchants Bank increased 2.35 percent to HK$12.22.
China Life, the country's largest insurer, rose 5.22 percent to 23.2 HK dollars. Ping An, China's second largest insurance company, advanced 4.27 percent to 36.65 HK dollars.
Hong Kong's local property companies were stronger. Sun Hung Kai Property rallied 3.65 percent to HK$62.4. Cheung Kong rose 4.36 percent to HK$65.8. Henderson Land gained 4.06 percent to HK$25.65. Sino Land surged 5.33 percent to HK$6.32. Hang Lung surged 6.15 percent to HK$14.5. New World Development went up 0.56 percent to HK$7.2
China Enterprise Index or H-shares, which reflect the performance of 42 companies registered on the Chinese mainland listed in Hong Kong, rose 240.69 points, or 3.41 percent, to close at 7,307.01.
Energy companies all rose as global oil prices bounced back above US$40 a barrel. PetroChina, the country's largest oil producer, went up 3.31 percent to HK$5.93. Sinopec, Asia's largest oil refiner, rose 3.07 percent to HK$4.36. CNOOC, China's largest offshore oil company, gained 4.31 percent to US$7.02. (HK$7.75 = US$1)
(Xinhua News Agency February 23, 2009)
