HK stocks climb 2.5 pct on China stimulus hopes

Hong Kong stocks climbed Friday on speculation China would launch another round of stimulus measures to back the economy and financial markets.

The blue chip Hang Seng index shrugged off weakness in regional markets to rise 336.31 points, or 2.5 percent, to 13,846.09.

Analysts said investors were hopeful that China would introduce new stimulus policies or further slash interest rates over the weekend to spur economic growth.

"These are just some wishful thinking by the investors as we are not certain whether China will launch them or not," said Jackson Wong, investment manager at Tanrich Securities.

China's central bank last week slashed a key interest rate by the largest amount in 11 years and the government last month announced a $586 billion spending package to boost the slowing economy.

Among the gainers Friday, financials and property developers finished higher on expectation of a rate cut. Banking giant HSBC gained 3.6 percent to 81.40 Hong Kong dollars and China Construction Bank rose 2.8 percent to HK$4.41.

Cheung Kong (Holdings) Ltd. moved 3.1 percent higher to HK$67.50, Sino Land added 0.2 percent to HK$5.29, but Sun Hung Kai Properties shed 0.6 percent to HK$54.30.

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Stock Exchange of Hong Kong: http://www.hkex.com.hk