It rose as much as 2.16 percent to an intraday high of 21,699.84 before gains were eroded and ended trading 1.76 percent higher at 21,614.8.

The main board dipped to HK$60 billion from HK$61 billion on Tuesday as investors adopted a "wait-and-see approach."

Redford Securities research head Kenny Tang Sing-hing said investors are waiting for the US Federal Reserve to decide on interest rates. China Construction Bank (0939) gained 2.42 percent to HK$6.77, while the Industrial and Commercial Bank of China (1398) jumped 2.59 percent to HK$6.35.

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As gold prices neared a record high, Zijin Mining (2899) rose 5.66 percent to HK$8.21 and Real Gold Mining (0246) gained 3.3 percent to HK$10.66.

US billionaire Warren Buffett's US$26 billion (HK$202.8 billion) buyout of Burlington Northern Santa Fe led to a rise in rail stocks.

Guangshen Railway (0525) jumped 4.78 percent to HK$3.29 and China Railway (0390) rose 2.58 percent to HK$6.36.

Heavyweight China Mobile (0941) rose 1.86 percent to HK$73.90.

The Shanghai Composite Index continued its stock rally, closing up 0.46 percent at 3,128.54. It gained 4.4 percent this week to reach its highest level since mid-August. MANDY LO