Hong Kong stocks rallied on Friday, sending the benchmark index to its biggest gain in three weeks, on speculation that an announcement on the launch date of the Shenzhen-Hong Kong Stock Connect program is imminent.

The Hang Seng Index (HSI) jumped as much as 2.4 percent before paring gains to 2 percent at the close of trading. The index soared 535 points to 27,822 on turnover of HK$137.82 billion.

The Hang Seng China Enterprises Index advanced 1.7 percent, while the share price of Hong Kong Exchanges and Clearing Ltd (HKEx) rose 5 percent.

"There's market talk that Hong Kong Stock Exchange will announce details on the Shenzhen Stock Connect this weekend, with the starting date being in September," said Yen Chiu, a Hong Kong-based trader at Shenwan Hongyuan Group.

"The rally seems to be speculation-driven for now," he said.

However, HKEx spokesperson Lorraine Chan denied that the local bourse has any plans to announce the program's launch date any time soon.

HKEx Chairman Chow Chung-kong said last month the bourse was preparing for the Shenzhen link to start in the second half of this year, while the date might be announced by the end of June.

The Shenzhen-Hong Kong Stock Connect will help solidify Hong Kong's role as a gateway to the mainland markets and give foreign investors greater access to non-State companies in the world's second-largest economy.

The Shenzhen link will be the second stocks cross-trading link between the mainland and the SAR following the launch of a similar program with Shanghai in November last year.

Technology, consumer and healthcare companies comprise nearly half of Shenzhen's benchmark gauge, while State-backed banks and industrial conglomerates dominate Shanghai's bourse.

The Shenzhen Composite Index fell 0.5 percent at the close on Friday after dropping as much as 1.9 percent earlier. The Shanghai Composite Index lost 1.6 percent.

HKEx jumped up to 5.9 percent in afternoon trading in Hong Kong before trimming gains. Volumes via the Shanghai link helped boost the bourse's first-quarter profit by 34 percent from a year earlier as average daily turnover for equities climbed 17 percent, the company said this week.

Hutchison Whampoa Ltd, controlled by Hong Kong billionaire Li Ka-shing, gained 4.3 percent - its biggest jump in four months. CK Hutchison Holdings Ltd rose 4.1 percent while China Mobile Ltd climbed 3.6 percent.

Insurer AIA Group Ltd added 4 percent for the biggest single boost to the HSI.

The volume of shares traded on the Hong Kong benchmark index was 35 percent below the 30-day average.

The Shenzhen-Hong Kong Stock Connect will help solidify Hong Kong's role as a gateway to mainland markets and give foreign investors greater access to non-State, technology, consumer and healthcare companies in the world's second-largest economy. Edmond Tang / China Daily

(HK Edition 05/16/2015 page6)