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Hong Kong stocks extended its early gains and surged 475.93 points, or 3.75 percent, to close near the day's highest at 13,175.1 on Monday amid reports that the US government could take as much as 25 percent to 40 percent of stake in Citigroup.

Turnover fell slightly to HK$39.58 billion ($5.09 billion) from Friday's HK$39.76 billion.

The benchmark Hang Seng Index recovered 78.79 points, or 0.62 percent, to open at the day's lowest 12,777.96 and extended its gains before closing at 13,175.1, just off the day's highest 13, 207.98.