The benchmark Hang Seng Index tracked overnight gains on Wall Street to open up 1.06 percent at 21,086.75 and expanded its gains before closing near the intra-day high. It surged 536.55 points, or 2.57 percent at the market close.

A woman walks past an electronic board displaying the Hang Seng Index of the Hong Kong Stock Exchange in Hong Kong, south China, Sept. 16, 2009. The Hong Kong stock market, led by banking share, closed at the fresh one year-high of 21,402.92 on Wednesday, ignoring mainland losses.(Xinhua/Lui Siu Wai)

    Turnover totaled 69.91 billion HK dollars (8.96 billion U.S. dollars), compared with 30.99 billion HK dollars (3.97 billion U.S. dollars) for Tuesday's half-day session.

    The gains were attributed to better U.S. retail sales data and comments from the Federal Reserve's Chairman Ben Bernanke that theU.S. recession was likely over. Analysts tipped the blue chip index to try new highs in the near term, adding that the index wasalso likely to find support at 20,800 if it moved downward.

    The HSI futures were trading at a premium of 35 points.

    Market heavyweight HSBC surged 3.07 percent to close at 87.4 HK dollars, the fresh high for the banking giant since it dipped to as low as 33 HK dollars shortly after the financial crisis broke out. Its local unit Hang Seng Bank also gained 0.8 percent.

    The Chinese mainland-based commercial lenders were also the leading gainers on the market, with ICBC advancing 4.41 percent, China Construction Bank advancing 2.54 percent and Bank of China 4. 02 percent. Bank of Communications gained 3.46 percent.

    BOC Hong Kong also gained 2.81 percent, ignoring its deletion from a foreign index.

    The finance sub-index was the obvious outperformer, gaining themost at 3.11 percent among the four major stock categories. The properties gained 1.7 percent, the commerce and industry sub-index gained 2.28 percent and the utilities, 0.83 percent.

    China Mobile, by far the leading carrier on the Chinese mainland and a market heavyweight, gained 1.96 percent. Smaller rival China Unicom gained 1.4 percent.

    The oil shares were also gainers, with full-operation PetroChina gaining 2.9 percent, refining-concentrated Sinopec 2.23 percent and offshore oil producer CNOOC 2.44 percent. China Shenhua, the coal conglomerate, surged 4.44 percent.

    Cheung Kong, the flagship of Hong Kong's richest man Li Ka- shing, added 2.1 HK dollars, or 2.2 percent, to close at 97.45 HK dollars. Sun Hung Kai Properties, the leading residential housing developer in Hong Kong, edged up 0.89 percent.

    HKEx, the sole exchange operator, gained 2.38 percent at 146.4 HK dollars.

    The surging gold price lifted the mining companies higher, with Real Gold Mining surging 18.27 percent to close at 11.46 HK dollars, Zijin Mining surging 7.8 percent at 8.15 HK dollars and Lingbao Gold surging 7.35 percent at 3.36 HK dollars. (7.8 HK dollars = 1 U.S. dollar)