Hong Kong  - Banking stocks led a resurgence in share prices Monday after the benchmark Hang Seng index in Hong Kong rose 3.1 per cent to post its largest single-day gain since early April. The index closed 658.7 points up at 22,532.9, the highest level since June 25.

HSBC Holdings led the charge, closing 4 per cent up at 124.80 Hong Kong dollars (16 dollars). This followed reports the bank has held talks with a Chinese state-controlled investment fund about a possible investment deal.

The Bank of East Asia rose 3.04 per cent to end the day at 37.40 Hong Kong dollars.

Property stocks also made significant gains after government figures showed the number of homes on the market fell to a record low in the first half of this year.

Cheung Kong Holdings, controlled by Li Ka-shing, one of Asia's richest men, posted a 3.59 per cent rise in its share price to 109.60 Hong Kong dollars.

Smaller property firms, which are also Hang Seng constituent stocks, saw significant gains. Henderson Land rose 4.96 per cent to 47.60 Hong Kong dollars, while shares in New World Development rose 5.07 per cent to 14.92 Hong Kong dollars. Hang Lung Properties rose 2.97 per cent to end the day at 26 Hong Kong dollars.

Asia's largest refining company, Sinopec (China Petroleum and Chemical Corporation) ended the day up nearly 3.34 per cent to 7.75 Hong Kong dollars, amid hopes that falling oil prices would buoy the company. (dpa)