Hong Kong stocks closed with another massive gain on Thursday, extending the previous day's 9-percent surge, as investors pile in after China pledged to maintain stable operation of the capital market.

The Hang Seng Index jumped by 7.04 percent on Thursday. The index saw a record advance of more than 20 percent on Wednesday, the largest daily gain since October 2008.

The Shanghai Composite Index rose by 1.4 percent on Thursday, and the Shenzhen Component Index gained by 2.41 percent.

Investor sentiment was sent rocketing on Wednesday after China's Financial Stability and Development Committee said the country will keep the markets stable with favorable policies.

The committee also revealed that Chinese and U.S. regulators have made positive progress regarding Chinese companies listed in the U.S.

An index of U.S.-listed Chinese firms surged 33 percent on Thursday. The advances on Wall Street were also helped by an upbeat assessment of the U.S. economy by Federal Reserve boss Jerome Powell after the bank lifted interest rates by a quarter point for the first time since 2018.

(With input from agencies)