Hong Kong equities rallied on Wednesday after the country's Premier Wen Jiabao hinted that the government has a room for monetary and fiscal reforms to stimulate faltering economy. Escalating expectations that the Fed will announce QE3 also supported Chinese stocks. The Hang Seng Index surged 1.10% to close at 20,075.39. Seven out of nine economic sectors included in the index spiked. Basic materials and industrials were the strongest sectors in Hang Seng index. Aluminum Corp of China, Citic Pacific and Hutchison Whampoa went up by 0.98%, 3.09% and 2.71%, respectively. Financials were also bullish, buoyed by anticipation of the German Constitutional Court hearing. Bank of East Asia and China construction Bank soared 1.43% and 1.40%. At the same time, consumer goods and services dropped, with Sands China and China Resources Enterprise falling by 1.70% and 3.82%.