Hong Kong's main stock index finished higher on Thursday, as investors snapped up laggard shares despite looming worries China will soon introduce further measures to slow its booming economy.
The blue chip Hang Seng Index ended up 0.50 percent, or 59.85 points, at 12,010.31 led by China-backed conglomerates such as China Resources Enterprise Ltd and Citic Pacific Ltd.
However, volume was below recent averages with HK $13.45 billion (US $1.72 billion) changing hands with much of mainland China sidelined for a week-long market holiday.
Traders said the index gained largely from a technical rebound, with few anticipating sharp gains in the days ahead.
Large China companies listed on the bourse, which have lagged Hong Kong plays in recent months, performed well despite worries over economy tightening measures.
Beijing-backed conglomerate China Resources Enterprises was the top blue chip performer, rising 4.71 percent to HK $10.
The company owns a 51 percent stake in China Resources Breweries along with London-listed SABMiller. SABMiller is bidding to take over China's fourth-largest beer maker, Harbin Brewery, which is attracting investor attention to China's large beer industry, the largest in the world by volume.
Harbin rose 3.72 percent to HK $4.87 in morning trade after soaring by nearly 50 percent on Wednesday. China oil companies gained ground after oil prices hit a fresh 13-year high on Wednesday on worries about Middle East energy supply security and fears over US summer gasoline shortages.
China's largest oil producer PetroChina Co Ltd rose 2.1 percent to HK $3.65. Asia's largest oil refiner Sinopec Corp was up 1.75 percent at HK $2.90.
The two companies make up nearly half of the weighting on the H-share index of China-registered companies listed in Hong Kong. H-shares rose 1.53 percent to 4,282.64.
China auto maker Denway Motors Ltd jumped 7.38 percent to HK $4.00 after investment bank Goldman Sachs upgraded the firm to "outperform".
Hong Kong conglomerate Swire Pacific and its airline unit Cathay Pacific Airways were among the top blue chip gainers, after the chairman of Swire Pacific announced a management reshuffle in which the airline's chief executive would become chairman.
Hong Kong property shares dipped on expectations the city's booming property market may be showing signs of fatigue.
Hong Kong's largest property firm Sun Hung Kai Properties dipped 0.76 percent to HK $65.50. The group's shares have shed 10 percent over the past month.