Hong Kong stocks rise on Wednesday to end at a three-week high, after upbeat data pointed to a continued recovery in China's economy.

** The Hang Seng index rose 1.9%, to 30,038.72, while the China Enterprises Index gained 1.8% to 11,810.25 points.

** China's factory gate prices rose in annual terms in January for the first time in a year, as months of strong manufacturing growth pushed raw material costs higher. The producer price index rose 0.3% from a year earlier, the fastest pace of increase since May 2019.

** Also helping sentiment, worries eased of an abrupt policy shift amid recent tight liquidity conditions, after the latest lending data.

** China's new bank loans leapt to new highs in January, boosted by seasonal demand, while broad credit growth slowed, as the central bank walks a tightrope between supporting a recovering economy and rising debt risks.

** Tech players, usually sensitive to changes in liquidity conditions, gained, with the Hang Seng tech index rising 2.5%.

** China's monetary policy has gradually returned to normal, leaving interbank interest rates at relatively high levels, which could help benefit Chinese banking shares, KGI Securities noted in a report.

** However, the brokerage added as China's Lunar New Year holiday approached, turnover declined in both the A-share market and Hong Kong market, and the Hang Seng index faced technical resistance around the 30,000-point level.

** The Hang Seng financial index gained 1.8%, leading the rally on Wednesday.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.57%, while Japan's Nikkei index closed up 0.19%.

** The yuan was quoted at 6.4386 per US dollar at 08:20 GMT, 0.07% weaker than the previous close of 6.4342.

** At close, China's A-shares were trading at a premium of 36.99% over Hong Kong-listed H-shares.