Hong Kong stocks ended 0.7 percent higher on Thursday, boosted by strong liquidity in the market and led by a robust performance by China telecoms plays. Hong Kong's blue-chip Hang Seng Index closed up 0.7 percent, or 98.99 points, at 14,261.79. Turnover was thick at HK$25.4 billion (US $3.3 billion), compared to HK$20.24 billion on Wednesday. Hong Kong's blue-chip Hang Seng Index had opened at a new 3-1/2 year high of 14,311.95 points - a level last seen in early March, 2001.
A sharp fall in oil prices overnight boosted market sentiment, with shipping and airline stocks rising on easing supply concerns.
China telecoms stocks rallied on the back of futures-related trading, traders said. China Unicom, the top blue-chip gainer, rose 4.03 percent to HK$6.45, while larger rival China Mobile rose 2.87 percent to HK$26.85.
Elsewhere, China's top offshore oil and gas producer CNOOC Ltd shed 0.56 percent to HK$4.40 on the back of a drop in oil prices.
Shares in China Southern Airlines rose 2.4 percent to HK$3.20, while Hong Kong's dominant carrier Cathay Pacific gained 3.27 percent to HK$14.20. Cathay's stock has been trading below HK$14.20 since a two-week rally fizzled out in mid-November. Fuel is a major cost for airlines.
Shares in Chinese oil major Sinopec Corp fell 0.76 percent to HK$3.275 after it denied that its parent company was in talks with tycoon Li Ka-shing's Hutchison Whampoa to buy Canadian firm Husky Energy Inc, shares in Hutchison were unchanged at HK$70.25.
Shares in Pacific Century Premium Development (PCPD), the property arm of fixed-line phone carrier PCCW, rose 4.12 percent to HK$2.525, after falling 8.49 percent on Wednesday after PCCW cut its holdings in the property arm, selling 23.9 percent of PCPD for US $143 million.
Shipping firm China Merchants Holdings (International) Co Ltd, China's largest container ports operator, also rose 3.54 percent to HK$13.15 on the back of the oil price drop.