Hong Kong shares ended 0.84 per cent higher Thursday on bargain hunting following heavy selling over the past week, while dealers also took heart from a rally on Wall Street. The benchmark Hang Seng Index climbed 180.13 points to 21,704.78 on turnover of HK$50.70 billion. Hong Kong luxury retail stocks saw strong gains after Chinese state news agency Xinhua reported the country plans to impose a tax on luxury products, raising hopes that mainland shoppers will spend more in the city’s shops. Jeweller Chow Sang Sang jumped 5.9 per cent to HK$20.90, extending recent gains to hit its highest level since mid-May. Fellow jeweller Luk Fook rose 3.4 per cent to HK$26.05. Bank shares also attracted increased trading as China’s largest banks continued to report first-half results. Agricultural Bank of China rose 2.1 per cent to HK$3.26 after the company reported a modest increase in bad loans. Chinese shares ended down 0.19 per cent. The benchmark Shanghai Composite Index slipped 4.07 points to 2,097.23 on turnover of 105.3 billion yuan (HK$132.5 billion). “The market is likely to consolidate with an upward bias as the economy has stabilised after a deceleration in the first half,” Capital Securities analyst Li Bin told Dow Jones Newswires. Shares of resources firms led the declines, with Chengtun Mining Group down 4.60 per cent at 8.71 yuan while Jiangxi Copper dropped 3.45 per cent to 17.09 yuan. Guizhou Panjiang Refined Coal fell 4.02 per cent to 9.30 yuan. Shanghai-based firms extended recent gains after the central government last week approved a free-trade zone in the city. Shanghai International Port surged by its 10 per cent daily limit for the fifth consecutive session to 4.11 yuan, while Shanghai Jinqiao Export Processing Zone Development also jumped 10 per cent to 12.87 yuan.