Hong Kong stocks rose for the fourth consecutive trading days to a five-month high, lifted by Chinese developers after data shows transactions are improving in China. The benchmark Hang Seng Index added 58.82 points, or 0.28 per cent, to close at 21,207.07. While the Hang Seng China Enterprises Index, which tracks the performance of Hong Kong-listed Chinese firms, lost 7.86 points, or 0.08 per cent, to finish at 10,367.46. “Hong Kong investors are still pretty cautious due to the policy uncertainties in the mainland,” said Hayman Chiu, senior analyst with Cinda International Holdings. “Today’s market was supported by the catch-up of some sectors which lagged behind previously, such as some property and solar names.” Developers led gains on Tuesday, with Hang Seng Property Index adding 0.97 per cent. China Overseas (0688.HK), the biggest Hong Kong-listed Chinese developer, added 2.27 per cent to close at HK$19.82. Data from property consultancies Centaline showed on Tuesday that new home transaction in 54 Chinese cities last week surged by 210 per cent from the golden week from September 30 to October 7. Chinese banks continued to be hit by profit taking activities which started on Monday, after the sector rallied last week as state-run investment arm Central Huijin said it would continue increase stake in the nation’s “big four” banks. Industrial & Commercial Bank of China (1398.HK) lost 1.22 per cent to finish at HK$4.88. Bank of China (3988.HK) shed 0.33 per cent to close at HK$3.07. “There is limited upside for the index to go up if there is not enough positive news,” Cinta’s Chiu said. There could be a round of consolidation for the market in the coming two weeks, with index falling to a level of 20,500, he said. Yet he sees the index to finish the year at as high as 22,000, driven by a rebound of Chinese economy in the fourth quarter and ample liquidity after the quantitative easing by the US. ZTE, the telecommunication equipment maker which fell more than 17 per cent on Monday, recovered part of its losses after its management said on Tuesday it would conduct a salary cut in a bid to trim costs. The stocks gained 3.60 per cent to close at HK$10.94. Ping An Insurance (2318.HK) added 0.82 per cent to close at HK$61.35 after it posted a 12 per cent growth in premium income for September from a year ago.