Associated Press
Hong Kong's main index surged nearly 4 percent Monday amid reports the U.S. government might take a bigger stake in troubled banking giant Citigroup.
The blue-chip Hang Seng benchmark closed up 475.93 points, or 3.8 percent, at 13,175.10.
Expectations of further government stimulus measures to help China's real estate industry also buoyed shares.
The Wall Street Journal said late Sunday that New York-based Citigroup (nyse: C - news - people ) was negotiating to increase the U.S. government's stake in the teetering lender to as much as 40 percent.
"People are taking it as a positive sign," said Francis Lun, general manager of Fulbright Securities Ltd. "It shows the government will not allow a major bank to fail again. They've learned their lesson with Lehman Brothers (nyse: LEHMQ - news - people ) that the ramifications are so great, sometimes no amount of money can rebuild confidence."
Gains were widespread, with developers rising sharply.
Top Hong Kong developer Sun Hung Kai added 3.7 percent, while Cheung Kong (other-otc: CHEUY.PK - news - people ) advanced 4.4 percent. Sino Land was up 5.3 percent.
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