Hong Kong stocks closed higher yesterday for the sixth consecutive day, led by mainland property developers buoyed by optimism that Beijing may relax controls on home-buying in the country.
Blue chips were also lifted by relief that European leaders had agreed to expand a bailout fund and by news on Thursday that economic growth had accelerated in the United States.
The Hang Seng Index rose 330.54 points, or 1.68 per cent, to close at 20,019.24, led by HSBC Holdings, which leapt 4.16 per cent to HK$70.10 to add 128 points to the index.
Li & Fung, the largest supplier to global retail giant Wal-Mart Stores, jumped 5.42 per cent to HK$15.56.
Among developers, Cheung Kong rose 2.83 per cent to HK$98.15, Sun Hung Kai Properties climbed 3.3 per cent to HK$109.60 and Henderson Land Development added 3.92 per cent to HK$42.45.
Analysts said a sharp rise in the number of home mortgages in negative equity was unlikely to hit the sector next week.
The Hong Kong Monetary Authority said yesterday the number of residential mortgages in negative equity jumped to 1,653 at the end of last month from just 48 cases at the end of June. Most of the negative equity cases were related to mortgages with loan-value ratios of 90 per cent or above, including those under the mortgage insurance programme.