Apr. 23, 2008 (China Knowledge) - Hong Kong stocks closed higher on Tuesday, tracking mainland markets' gains, with expectations of more bailout policies from the central government.

Hang Seng Index, the benchmark, opened slightly lower at 24,460.64 points in the morning session. After fluctuating between 24,413.25 and 24,965.74 points, the blue-chip Hang Seng Index ended 217.48 points, or 0.88% higher to 24,939.15 points. Mainboard turnover rose slightly to HK$87.74 billion (US$11.26 billion), compared with HK$81.29 billion on Friday.

Hang Seng China Enterprise Index, which tracks the overall performance of 43 Chinese mainland state-owned enterprises on Hong Kong Stock Exchange, moved up 404.97 points or 3.11% to 13,420.22 points.

Thirty-three of the total 43 blue chips jumped yesterday. Market heavyweight China Mobile<941><CHL>, the largest firm in the Hong Kong market by capitalization, tumbled HK$2.8 or 2.08% to HK$131.9 upon release of its first quarter earnings, dragging the Hang Seng Index down by 73.17 points alone. HSBC Holdings Plc<5><HBC>, another market heavyweight, also dipped 0.68% to HK$131.5.

The financial stocks outperformed in the day with the finance sub-index leaping 0.9%. The Industrial and Commercial Bank of China<601398><1398>, the largest lender in the country, gained 2.34% to HK$6.12. Bank of China<601988><3988> added 0.8% to HK$3.78. China Construction Bank<601939><939> ended up 2.84% to HK$6.53.

China Life<601628><2628><LFC> increased 2.35% to HK$30.5. But Ping An Insurance (Group) Co<601318><2318> dipped 0.08% to HK$62.9.

China's largest fertilizer trader Sinofert<297> rebounded more than 6% to HK$5.62 on news that China lifted tariffs to above 100% on fertilizer exports in a bid to control rapidly surging domestic agricultural costs and inflation.

Hang Seng Index may rise to around 26, 000 in recent weeks if the mainland market started to turn around, analysts said.