Hong Kong stocks closed sharply higher on Thursday, concluding the session at a near 14-month high, after China's top decision-making body Politburo pledged additional stimulus measures.

The Hang Seng Index rallied 4.2%, or 795.48 points, to end at 19,924.58, the best finish since Aug. 1, 2023. The Hang Seng China Enterprises Index surged 4.8%, or 321.10 points, to 7,086.70.

Sentiment in the local equities market was upbeat for a third straight day following the Politburo meeting.

The Politburo vowed to revive the private economy, steady the faltering housing market, and ensure necessary fiscal spending, South China Morning Post reported.

The Politburo, headed by Xi Jinping, is the highest decision-making body within the Chinese Communist Party. Its members include the country's top economic planners who set the policy tone and direction for industries.

Beijing will also boost efforts to launch incremental policies to achieve the economic growth target, ramp up "whitelist" loans aimed at unfinished housing projects, and increase the incomes of low- and middle-income groups, SCMP said.

In corporate news, ClouDr Group (HKG:9955) said its diabetes-related digital drug product, ClouDT-01, was approved by China's Zhejiang Medical Products Administration and received the medical device registration certificate. The company's shares closed 8% higher on Thursday.

Crocodile Garments (HKG:0122) reported a loss attributable to the owners of HK$33.8 million in the first half ended June 30, compared to HK$108.8 million in the prior-year period. The company shares closed 11% lower on Thursday.