Henderson Land's strong gains were due mainly to speculation that it might privatize unit Hong Kong & China Gas and launch a real estate investment trust.

There's short-term speculation on aviation as gains in other sectors, like financial services, present a chance to increase exposure in other sectors.

Funds' selective buying helped support the index. The market extended its gains in late trade also due to some futures-related trading.

Hong Kong players' unprecedented enthusiasm in the mainland's insurance sector is mainly due to the saturation of Hong Kong's life insurance market.

Overbuying of China stocks was obvious in the last two weeks. Investors are taking profits gradually, but some are still chasing laggards such as commodity stocks.

Profit-taking in many China stocks ... drove the market as well as H-shares into negative territory.