Hong Kong stocks rise again as China market continues to recover

Hong Kong (Reuters): Hong Kong stocks rose for a third straight day as investors cautiously built up positions, tracking a continuous recovery in mainland shares after China launched a fresh crackdown on margin lending.

The Hang Seng index rose 1.3% to end the day at 25,224.01 points, the highest close since 6 July, while the China Enterprises Index gained 1.2% to close at 12,003.83 points.

China stocks, led by small caps, extended their recovery for a third day, raising hopes that measures taken by Beijing to prevent a full-blown market crash have worked.

Gaming stock Sands China led gains in the Hong Kong blue-chip index, rising 4.7%. It was followed by Hang Lung Properties and China Resources Power, both up 4.6%.

Guangzhou Automobile Group led rises in the China companies index, soaring 6.3%. It was followed by China Longyuan Power with a 5.4% increase, and Dongfeng Motor, up 4.5%.