Hong Kong shares renew 2011 rally

The benchmark Hang Seng Index ended 365.27 points higher at 24,125.61 on turnover of HK$90.26 billion ($11.61 billion).

It was the highest close since November 12, when the index ended at 24.222.58. The Hang Seng has risen 4.7 per cent so far this year.

Previously weak HSBC jumped 3.7 per cent to HK$85.45, echoing gains for the stock in London.

Among property stocks, China Overseas Land finished up 0.5 per cent at HK$15.30 and China Resources Land was 1.6 per cent higher at HK$15.08, while Shimao Property rose 2.3 per cent to HK$13.20.

The property-sector gains came after mainland heavyweight Poly Real Estate said its 2010 property sales rose 52.5 per cent from a year earlier.

However conglomerate Hutchison Whampoa, Hong Kong's best performer over the year so far, dipped 0.4 per cent to HK$92.60 on profit-taking. Investors have pushed the stock higher on expectations of a turn-around in the company's 3G telephone business.

On the mainland, the Shanghai Composite index closed up 0.62 per cent, with cement and steel stocks leading the gains due to hopes for rising prices, while property stocks were also buoyant.

The Composite, which covers both A and B shares, was up 17.26 points at 2,821.31 on turnover of 88.1 billion yuan ($13.2 billion).

However Zhou Lin, an analyst at Huatai Securities, cautioned that: "The slow trading volume shows investors are still worried about possible tightening measures due to inflationary pressures. Investors are also cautious ahead of the release of major economic data," Dow Jones Newswires reported.

Steel makers led the gains after Baoshan Iron and Steel announced it had raised February prices for key products.

Xinjiang Bayi Iron and Steel rose 3.3 per cent to 12.38 yuan, while Baoshan Iron and Steel was 1.9 per cent higher at 6.83 yuan.

Poly Real Estate gained 2.5 per cent to 15.11 yuan, extending its 5.6 per cent increase Tuesday. China Vanke rose 0.4 per cent to 9.07 yuan after ending 3.3 per cent higher in the previous session.