Nov. 10 (Bloomberg) -- Hong Kong stocks rose, sending the benchmark index tracking Chinese companies listed in the city to a three-week high, after China pledged a 4 trillion yuan ($586 billion) stimulus package to bolster growth.

Aluminum Corp. of China Ltd., the nation's biggest producer of the metal, surged 19 percent. China Railway Construction Corp., builder of more than half the nation's railroads, climbed 20 percent. China Construction Bank Corp. added 7.7 percent. Anhui Conch Cement Co. soared 31 percent. PetroChina Co. jumped 8.2 percent after crude oil prices advanced more than 4 percent.

``China Railway Construction and Anhui Conch are the top picks,'' said Frank Gong, Hong Kong-based head of China equity research at JPMorgan Chase & Co. ``Also banks will participate in financing the infrastructure projects. So they won't need to worry about loan growth.''

The Hang Seng Index added 501.20, or 3.5 percent, to close at 14,744.63, extending a 3.3 percent advance on Nov. 7. The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese companies, gained 9.1 percent to 7,412.85, its highest close since Oct. 20.

The Hang Seng Index has surged 34 percent since Oct. 27, its worst close since May 2004, after China cut interest rates for the third time in two months and Hong Kong followed the U.S. rate reduction last month.

The gauge is still down 47 percent this year as global financial turmoil prompted Hong Kong to guarantee bank deposits last month and to form a task force led by the city's Chief Executive Donald Tsang aimed at alleviating the impact of the credit crisis on the local economy.

`General Mandate'

Chalco, as Aluminum Corp. is known, surged 19 percent to HK$3.45, making it the biggest percentage gainer on the Hang Seng Index. The company said yesterday its shareholders granted the board of directors a ``general mandate'' to repurchase H shares of the company.

China Railway Construction climbed 20 percent to HK$10.70. Anhui Conch, China's largest maker of cement, soared 31 percent to HK$35.50. China National Building Material Co., the country's second-biggest cement maker, jumped 42 percent to HK$5.75. Construction Bank added 7.7 percent to HK$4.34.

China's $586 billion stimulus plan, equivalent to almost a fifth of the nation's gross domestic product last year, will be used by the end of 2010, the State Council said yesterday. Following a weekend meeting in Sao Paulo, finance ministers from the Group of 20 nations, of which China is a member, issued a joint statement saying they are ready to act ``urgently'' to tackle the economic slump.

PetroChina, the nation's largest oil producer, rose 8.2 percent to HK$6.19. Cnooc Ltd., China's biggest offshore oil producer, added 9.2 percent to HK$6.50.

Crude oil futures climbed 3.8 percent to $63.35 a barrel in after-hours trading, after surging as much as 5.3 percent.

More than two stocks on the 42-member Hang Seng Index advanced for each that dropped. November futures climbed 3.8 percent to 14,737.

The following stocks rose or fell. Stock symbols are in brackets after company names.

China Yurun Food Group Ltd. (1068 HK) advanced 64 cents, or 6.9 percent, to HK$9.95. The country's biggest hog processor will spend HK$4 billion ($513 million) to expand and acquire rivals. The company plans to double capacity and has enough cash and loans to fund the expansion over the next two years, Chief Operating Officer Zhang Yuanfei said yesterday.

Lenovo Group Ltd. (992 HK), China's biggest computer maker, plunged 30 cents, or 14 percent, to HK$1.92, its worst slump since September 2001. Morgan Stanley cut its rating for the stock to ``underweight'' from ``equal-weight'' on lower profit projections, according to a research note today.

Li & Fung Ltd. (494 HK) dropped 90 cents, or 5.8 percent, to HK$14.60. The Hong Kong-based supplier of toys and clothing to Wal-Mart Stores Inc. and Target Corp. said it will freeze hiring, trim jobs and cut travel expenses as it reviews costs.

Shun Tak Holdings Ltd. (242 HK), the Macau transport company and developer controlled by billionaire Stanley Ho, advanced 19 cents, or 11 percent, to HK$1.94. The company, Genting Bhd., Las Vegas Sands Corp. and MGM Mirage are looking to open gaming and resort businesses in South Korea, the South China Morning Post reported, citing government authorities.

Tsingtao Brewery Co. (168 HK) lost 18 cents, or 1.2 percent, to HK$14.60, after surging as much as 12 percent. China's largest brewer by sales agreed to buy a 39 percent stake in Asahi Breweries Ltd.'s China venture. Asahi didn't provide the investment amount in a statement.

To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net.

Last Updated: November 10, 2008 04:48 EST