Hong Kong blue chip stocks gained 0.88 percent on Friday after major US stock indexes posted their biggest single-day gains in a month as benign inflation data eased worries about interest rate increases.
The benchmark Hang Seng indexes rose 132.35 points to end on Friday at 15,200.38, following a 0.9 percent rise on Thursday. The index has gained 0.79 percent this week and is up 6.8 percent so far this year.
The blue chip index rose 3.8 percent in November.
Traders said the market was building up momentum for the index to test 15,500. Turnover was HK$23.8 billion ($3.05 billion) compared with HK$22.3 billion on Thursday.
New listings continued to shine, with shares of Chinese property developer New Heritage Holdings Ltd up almost 33 percent to end its debut at HK$0.77.
The stock had been indicated 55 percent above its issue price at HK$0.90 in the pre-open ahead of its HK$97.4 million ($12.5 million) debut.
The Sushi-based property firm sold 168 million shares at HK$0.58 each.
Shares of property stocks rebounded after a recent selloff and traders expect the sector to consolidate awaiting buying incentives.
The blue chips property sub-index gained 0.27 percent to end at 17,962.65 on Friday. The sub-index fell 1.2 percent over the week. Shares of Synoptic Kanto's Holdings Ltd soared 20.8 percent to HK$1.45 in heavy turnover of 44.5 million shares against just 1.35 million a day.
There was fresh market talk that Synoptic Corp which controls 72.34 percent of Kanto's via units, may take the firm private, traders said.
Another privatisation target, Synoptic Yizheng, in which Synoptic Corp has a 42 percent stake, rose 4.3 percent to HK$1.45.
UBS has raised its H-share index target to 6,000 as the scale of both margin erosion due to new manufacturing capacity in 2005 and level of overcapacity in overheated sectors in China's economy is not as severe as had been expected.
The Chinese enterprises H-shares index ended 0.50 percent higher at 5,105.60 on Friday. The H-share index has risen 7.7 percent so far in 2005.
Shares of Link REIT rose 3.5 percent to HK$13.25. The shares, which went public on November 25, were 34 percent above their HK$10.30 issue price.
Link REIT said on Thursday that Britain's Children's Investment Fund Management had picked up a 17.95 percent stake. HSBC Holdings Plc. rose 0.56 percent to HK$125.60 after it said on Thursday all its customer areas delivered higher pre-tax profit in the third quarter than a year ago.