The benchmark Hang Seng Index closed at a record high of 23984.14 points on Friday, supported by strong gains on other Asian markets, as a weaker yen lifted sentiment.
The Hang Seng Index was up 499.6 points, or 2.13 percent, after hitting a new intra-day high of 24089.
The Shanghai Composite Index rose 0.99 percent to close at a record high of 5218.83 points.
Asian stocks rallied on anticipation the US government would offer help to homeowners with subprime mortgages, to ease fears credit woes will affect the broader global economy.
Analysts said that even if the US government releases a policy that's not favorable to the market, Hong Kong will be less affected than other Asian markets.
"Investor sentiment was boosted today, but whether the stock performance will remain upbeat next week depends on the next policy move from the US," said Louise Wong, director of Phillip Asset Management, a securities consulting firm in Hong Kong.
"But even if the policy is not favorable for the markets, Hong Kong will feel less of an impact than other markets in Asia, because it is relatively stronger thanks to the robust growth of Hong Kong-listed mainland companies," said Wong, adding that H-share companies have so far reported better-than-expected results for the first half of this year, which has boosted market sentiment.
Market sentiment in Hong Kong remains optimistic in anticipation of big inflows from the mainland, even though the central government may delay its pilot program to allow individual mainland investors to buy shares in the city.
Mainland shares listed in Hong Kong led Friday's rally, with the 41-stock China Enterprises Index gaining 401 points, or 2.9 percent, to 14338 points.
Other key sub-indices also rose. The property index was up 722.9 points, or 2.7 percent, at 27256.9, while the finance index rose 643.5 points, or 1.8 percent, to 36685.8.
(China Daily September 1, 2007)
