Hong Kong stocks close 3.75% higher on Citi reports

Special Report:Global Financial Crisis

HONG KONG, Feb. 23 (Chinese media) -- Hong Kong stocks extended its early gains

and surged 475.93 points, or 3.75 percent, to close near the day's highest at

13,175.1 on Monday amid reports that the U.S. government could take as much as

25 percent to 40 percent of Citi group's stakes.

Turnover fell slightly to 39.58 billion HK dollars (5.09 billion U.S.

dollars) from Friday's 39.76 billion HK dollars (5.13 billion U.S. dollars).

The benchmark Hang Seng Index recovered 78.79 points, or 0.62 percent, to

open at the day's lowest 12,777.96.

The market sentiment was encouraged by reports that the U.S. government is

in talks with Citi group on taking 25 percent to 40 percent of the financial

institution, lifting the index by as much as 508.81 points, or 4.01 percent, to

the day's peak 13,027.98.

The index softened a little bit to close at 13,175.1, up 475.93 points, or

3.75 percent.

Market giant China Mobile, the country's largest mobile phone operator, was

the market's major driving force. China Mobile advanced 5.06 percent to 71.65 HK

dollars, boosting the index by 90.18 points alone.

Another market heavyweight HSBC, which accounts for the largest weighting

of the index, added 0.91 percent to 55.3 HK dollars.

Hong Kong Exchange and Clearing Ltd., the market's sole operator, bounced

2.35 percent to 65.4 HK dollars.

China's banks and insurance companies were also major contributors to the

market's gains.

China's largest lender ICBC rose 2.45 percent to 3.34 HK dollars. Bank of

China, the country's second largest bank, gained 1.9 percent to 2.15 HK dollars.

China Construction Bank surged 5. 31 percent to 3.97 HK dollars. Bank of

Communications rallied 3.33 percent to 4.96 HK dollars. China Merchants Bank

increased 2.35 percent to 12.22 HK dollars.

China Life, the country's largest insurer, rose 5.22 percent to 23.2 HK

dollars. Ping An, China's second largest insurance company, advanced 4.27

percent to 36.65 HK dollars.

Hong Kong's local property companies were stronger. Sun Hung Kai Property

rallied 3.65 percent to 62.4 HK dollars. Cheung Kong rose 4.36 percent to 65.8

HK dollars. Henderson Land gained 4.06 percent to 25.65 HK dollars. Sino Land

surged 5.33 percent to 6.32 HK dollars. Hang Lung surged 6.15 percent to 14.5 HK

dollars. New World Development went up 0.56 percent to 7.2 HK dollars.

China Enterprise Index or H-shares, which reflect the performance of 42

companies registered on the Chinese mainland listed in Hong Kong, rose 240.69

points, or 3.41 percent, to close at 7,307.01.

Energy companies all rose as global oil prices bounced back above 40 U.S.

dollars a barrel. PetroChina, the country's largest oil producer, went up 3.31

percent to 5.93 HK dollars. Sinopec, Asia's largest oil refiner, rose 3.07

percent to 4.36 HK dollars. CNOOC, China's largest offshore oil company, gained

4.31 percent to 7.02 HK dollars. (7.75 HK dollars = 1 U.S. dollar)