Hong Kong stocks closed sharply higher on Thursday, boosted mainly by the prices upsurge of Chinese shares in the market amid rosy economic outlook towards the Chinese mainland.

The benchmark Hang Seng Index rose 199.17 points, or 1.46 percent, to open at 13,821.28 and touched the day's lowest 13,819.1 within narrow fluctuation in the morning session.

Encouraged by the Industrial and Commercial Bank of China's strong growth of profit in 2008, investors rushed to buy into shares of major companies in the Chinese mainland in the afternoon session, sending the index above the 14,000 mark.

The index jumped 486.87 points, or 3.57 percent, to close at 14,108.98 after peaking at 14,132.09.

Turnover rose sharply to 64.05 billion HK dollars (8.27 billion U.S. dollars) from Wednesday's 54.13 billion HK dollars (6.99 billion U.S. dollars).

The prices upsurge of major Chinese mainland companies across the board contributed to most the market's gains. China Enterprise Index, which reflects the performance of 42 major companies registered in the Chinese mainland, surged 522.3 points, or 6.56 percent, to close at 8,489.29 following huge rallies of Chinese shares.

Market sentiment turned very upbeat after most traded ICBC, China's largest lender and the world's biggest bank by capitalization, posted a 35.2 percent rise in after-tax profit to 111.23 billion yuan (16.36 billion U.S. dollars) in 2008.

ICBC rocketed 14.8 percent to 4.11 HK dollars after the lender announced at its annual results conference on Wednesday that it had reached an agreement with Goldman Sachs Group Inc. to extend Goldman's lockup period of 4.9 percent of stake in the lender, a move that clears the uncertainty of possible huge sell-off in the market.

Bank of China, the country's second largest bank behind ICBC, surged 7.85 percent to 2.61 HK dollars. China Construction Bank jumped 7.47 percent to 4.75 HK dollars. Bank of Communications soared 9.59 percent to 5.83 HK dollars. China Merchants Bank shot up 9.24 percent to 14.66 HK dollars.

China Life, the country's largest insurer, rose 4.34 percent to26.45 HK dollars as its net profit shrank 45.27 percent to 21.28 billion yuan (about 3.1 billion U.S. dollars), a result that was within the market expectation.

Ping An, China's second largest insurance company behind China Life, advanced 5.54 percent to 49.55 HK dollars.

China's energy companies were higher after regulatory authorities in the country raised retail prices of gasoline by 290yuan (42.46 U.S. dollars) per ton and that of diesel by 180 yuan per ton as of midnight Tuesday.

PetroChina, the country's largest oil producer, added 3.71 percent to 6.71 HK dollars. Sinopec, the country's largest refiner, surged 7.54 percent to 4.99 HK dollars. CNOOC, China's largest offshore oil producer, bounced 3.89 percent to 8.29 HK dollars.

Market heavyweight HSBC, which accounts for the largest weighting of the benchmark Hang Seng Index, dipped 0.69 percent to43.35 HK dollars.

Another market giant, China Mobile, the market's largest stock by capitalization and the country's largest mobile phone operator, gained 4.1 percent to 69.8 HK dollars.

The Hong Kong Exchanges and Clearing Ltd., the market's sole operator, went up 4.83 percent to 77.1 HK dollars.

Hong Kong's property companies were all higher. Cheung Kong, one of the city's largest property companies controlled by tycoon Li Ka-shing, rose 1.85 percent to 71.4 HK dollars though its net profit fell 44 percent to 15.52 billion HK dollars (2 billion U.S. dollars), a result below the market expectation. Hutchison, another conglomerate controlled by Li, went up 3.28 percent to 42.55 HK dollars. Hutchison reported a 42 percent decrease in its net profit to 8.83 billion HK dollars (1.1 billion U.S. dollars).

Sung Hung Kai Property, the city's largest developer, increased3.53 percent to 71.8 HK dollars. Henderson Land added 2.05 percent to 29.9 HK dollars. Sino Land rallied 3.71 percent to 7.83 HK dollars. Hang Lung Property moved up 2.99 percent to 17.92 HK dollars. New World Development jumped 5.1 percent to 8.24 HK dollars. (7.7415 HK dollars =1 U.S. dollar)

Source: Xinhua