Hong Kong shares rose on Tuesday as high tech and financials stocks rallied, after the Chinese mainland regulators approved a deal involving index heavyweight Tencent Holdings and after the Bank of England scrapped dividend curbs on lenders including HSBC.

At the close of trade, the Hang Seng index was up 448.17 points, or 1.63 percent, at 27,963.41. The Hang Seng China Enterprises index rose 1.69 percent to 10,113.32. 

Tech firms in Hong Kong drove gains, with the sub-index of the Hang Seng tracking the IT sector rising 3.3 percent and the Hang Seng Tech index up 1.94 percent.

The financial sector also gained, rising 1.54 percent with Hong Kong shares of HSBC Holdings Plc ending 2.62 percent higher after the Bank of England on Tuesday scrapped pandemic-era curbs on dividends from top lenders with immediate effect.