The benchmark Hang Seng Index added 36.47 points to 18,434.39 on turnover of HK$24.47 billion ($3.12 billion).
It fell from 23,035.45 at the beginning of the year, shedding 19.97 percent, or 4,601.06 points.
The market was lifted on Friday by upbeat housing and jobs data from the United States, which added to optimism for the world's number one economy.
Chinese shares closed up 1.19 percent, lifted by hopes Beijing may cut bank reserve requirements early next year, dealers said.
The Shanghai Composite Index, which covers both A and B shares, was up 25.86 points to 2,199.42 on turnover of 42.7 billion yuan ($6.8 billion).
The benchmark index has lost 21.68 percent this year, the biggest annual fall since 2008, on concerns over high inflation, an economic slowdown and tight liquidity conditions, dealers said.