(Bloomberg) -- Hong Kong stocks led gains in Asia on Wednesday, driven by optimism over potential Chinese capital market reform policies. 

The Hang Seng China Enterprises Index finished 3.5% higher, the most in more than three months. Technology giants Meituan and Tencent Holdings Ltd. were among the biggest contributors to the gauge’s first gain in four sessions.

The jump in Hong Kong equities comes amid growing investor optimism about more market-friendly measures from regulators. Hong Kong is looking to allow mainland investors buy some of the city’s listed stocks in the yuan, regulators said at the annual Lujiazui Forum, which began in Shanghai on Wednesday. 

Beijing is also reviewing a proposal to waive the 20% tax on dividends from Hong Kong stocks bought via trading link, Bloomberg News reported last month. 

“Investors are anticipating policy boost from Lujiazui Forum, as Chinese high-dividend stocks are outperforming,” said Kenny Ng, a strategist at China Everbright Securities International. “Hong Kong stocks are also poised for a technical rebound.”

Billy Leung, an investment strategist at Global X ETFs, echoed the view, saying he expects the policies to be more relevant for Hong Kong-listed shares.

Some market participants attribute the rebound to a catch up to gains in other markets. Hong Kong’s shares had declined for three straight sessions, missing out on a tech-fueled rally in the region. Despite today’s gains, the HSCEI still lagged behind its regional peers, up just 3% this month.

Optimists argue the momentum is set to continue, as Hong Kong shares are likely at a cyclical bottom. 

“Today’s jump looks more like a technical rebound,” said Zhou Nan, founder and investment director at Shenzhen Long Hui Fund Management Co. “But this is within expectation following some correction and there’s a high probability that Hong Kong stocks may hit a new high this year.”

In other news, the financial hub announced Tuesday that it would end its decades-long practice of shutting its markets during typhoons and major storms starting on Sept. 23, which analysts said could help remove a source of uncertainty about access to market and liquidity.

--With assistance from John Cheng and Mengchen Lu.

(Updates with prices, strategist comments)

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