Hong Kong stocks rose for a third straight day as investors cautiously built up positions, tracking a continuous recovery in mainland shares after China launched a fresh crackdown on margin lending.
The Hang Seng index rose 1.3 per cent to end the day at 25,224.01 points, the highest close since July 6, while the China Enterprises Index gained 1.2 per cent to close at 12,003.83 points.
China stocks, led by small caps, extended their recovery for a third day, raising hopes that measures taken by Beijing to prevent a full-blown market crash have worked.
Gaming stock Sands China led gains in the Hong Kong blue-chip index, rising 4.7 per cent. It was followed by Hang Lung Properties and China Resources Power , both up 4.6 per cent.
Guangzhou Automobile Group led rises in the China companies index, soaring 6.3 per cent. It was followed by China Longyuan Power with a 5.4 per cent increase, and Dongfeng Motor, up 4.5 per cent.