Hong Kong stocks soared on Friday, capping its best week since the global financial crisis, fuelled by a series of Chinese measures this week aimed at kickstarting the world's second-largest economy.

The Hang Seng Index rallied 3.55 percent, or 707 points, to 20,632, the first time it has broken 20,000 since August 2023.

Turnover exceeded HK$445 billion, a new high.

The gains were across the board.

Shares on the mainland also finished higher.

The Shanghai Composite Index jumped 2.88 percent, or 86 points, to 3,087, and the Shenzhen Component Index soared 6.71 percent to close at 9,514.

Beijing on Friday announced it had cut the amount of cash banks must hold in reserve to boost lending, having flagged the move earlier this week along with a batch of other stimulus including support for the property sector, interest rate cuts and pledges to boost jobs.

"At face value, all measures announced this week signal that the urgency of policy response is not lost on authorities – an important shift in a market that was looking for more than just the bare minimum," Barclays analysts said.

"But in a scenario that would have more far-reaching effects on global assets, perhaps this week signals that China is looking to repair its national balance sheet structurally." (Agencies)