The Hang Seng Index snapped two sessions of losses yesterday, gaining 374.71 points supported by lenders and gold miners.
It rose as much as 2.16 percent to an intraday high of 21,699.84 before gains were eroded and ended trading 1.76 percent higher at 21,614.8.
The main board dipped to HK$60 billion from HK$61 billion on Tuesday as investors adopted a "wait-and-see approach."
Redford Securities research head Kenny Tang Sing-hing said investors are waiting for the US Federal Reserve to decide on interest rates. China Construction Bank (0939) gained 2.42 percent to HK$6.77, while the Industrial and Commercial Bank of China (1398) jumped 2.59 percent to HK$6.35.
As gold prices neared a record high, Zijin Mining (2899) rose 5.66 percent to HK$8.21 and Real Gold Mining (0246) gained 3.3 percent to HK$10.66.
US billionaire Warren Buffett's US$26 billion (HK$202.8 billion) buyout of Burlington Northern Santa Fe led to a rise in rail stocks.
Guangshen Railway (0525) jumped 4.78 percent to HK$3.29 and China Railway (0390) rose 2.58 percent to HK$6.36.
Heavyweight China Mobile (0941) rose 1.86 percent to HK$73.90.
The Shanghai Composite Index continued its stock rally, closing up 0.46 percent at 3,128.54. It gained 4.4 percent this week to reach its highest level since mid-August. MANDY LO
