Shanghai shares have best day in four months, lifting Hong Kong
* HSI +1.2 pct, H-shares +2.4 pct, CSI300 +3.4 pct
* CSI300 has biggest gain in 6 months on preferred shares policy
* China indexes lifted by property, banking stocks
* Li & Fung up 21.2 percent on good earnings (Adds comment, updates stocks to close)
By Alice Woodhouse and Chen Yixin
HONG KONG/SHANGHAI, March 21 (Reuters) - Chinese shares rallied on Friday, led by banks and property shares, amid speculation the country's securities regulator would reveal details of a preferred pilot scheme and news of looser finance restrictions for developers.
After the market closed, the China Securities Regulatory Commission said three kinds of listed companies would be allowed to issue preferred shares as it unveiled rules for a long-awaited pilot scheme for such issues.
Hong Kong shares ended up, lifted by the rally in Chinese shares in the afternoon session, on gains led by Li & Fung and the property sector.
The Shanghai Composite Index closed up 2.7 percent at 2,047.62 points, its best day since Nov. 18. It gained 2.2 percent for the week, its best in five weeks. Volume in Shanghai was at 14.4 billion, double the 20-day moving average. Continuación...