Hong Kong shares jumped 1.88 per cent yesterday as investors drove up the price of market heavyweight HSBC ahead of its interim results announcement. The Hang Seng Index rose 248.57 points to 13,435.43. The index edged off slightly towards the close on profit-taking, after reaching a high of 13,451.51 points. After the market closed, the global bank and its Hong Kong subsidiary Hang Seng Bank revealed better than expected profit results for the first six months of the year. Group pretax profits were 10.36 per cent stronger at US$4.06 billion, compared with $3.68 billion in the previous first half. Analysts were expecting pretax profits of about $3.43 billion for HSBC. Hang Seng Bank's net profit improved 12.07 per cent to HK$4.26 billion. HSBC posted net profit of US$2.69 billion, a 12.15 per cent increase from $2.4 billion in the first half of last year. HSBC shares finished 3 per cent higher at $94.25, while Hang Seng Bank shares rose 2.05 per cent to $86.75. 'The [Hong Kong] market has rebounded on the expectation of good news [from HSBC],' Celestial Asia Securities head of research Eugene Law Ka-kin said. DBS Securities sales director Percy Au-young said: 'One of the reasons why the market was strong was the anticipation of good results from the two banks.' Red chips ended 3.26 per cent firmer at 1,205.31 points, while H shares rose 2.72 per cent to 569.13 points. In Shanghai, B shares gained 1.64 per cent to 48.307 points. 'I think with red chips and H shares, they should benefit this year as China further boosts its economy,' Sun Hung Kai Securities research head Gilbert Chu Kwok-tsu said. 'I can say that [the gains yesterday] are also on the back of China Everbright [Holdings].' China Everbright shares gained 8.8 per cent to $6.80. Mr Au-young said the market was not concerned about recent problems within the China Everbright group and that had helped boost red chips. China Everbright's former chairman Zhu Xiaohua had been rumoured last week to be the target of a mainland government investigation. Last Friday, the company announced that he had been replaced, saying it was a routine management change and allaying fears of a management shake-out. 'There was some follow-through buying after initial worries about what was going to happen on red chips with the China Everbright problem . . . and red chips had been hit quite hard,' Mr Au-young said. 'The market was at 14,500 [points] and then went to 12,800, so it was a bit oversold. And now, there has been a technical rebound.' Dropping back were recent gainers Giordano International, off 3.75 per cent to $6.40, and Goldlion, which finished 8.53 per cent lower at $1.50.