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After the market closed, the China Securities Regulatory Commission said three kinds of listed companies would be allowed to issue preferred shares as it unveiled rules for a long-awaited pilot for such issues.
Hong Kong shares ended up, lifted by the rally in Chinese shares in the afternoon session, on gains led by Li & Fung and the property sector.
The Shanghai Composite Index closed up 2.7 percent at 2,047.62 points, its best day since Nov 18. It gained 2.2 percent for the week, its best in five weeks. Volume in Shanghai was at 14.4 billion, double the 20-day moving average.
The CSI300 of the leading Shanghai and Shenzhen A-share listings rose 3.4 percent on the day, its biggest gain in more than six months. It was up 1.7 percent for the week. The CSI300 had opened at its lowest level since 2009.
The Hang Seng Index closed up 1.2 percent at 21,436.70, its best day in three weeks, with global exporter Li & Fung surging 21 percent as investors cheered better-than-expected earnings and a spinoff plan.
The benchmark index closed down 0.5 percent on the week for its fourth consecutive week of losses.
The China Enterprises Index of the top Chinese listings in Hong Kong rose 2.4 percent on the day and 1.4 percent for the week, its largest weekly gain in five weeks.
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