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HONG KONG, July 13 (Reuters) - Hong Kong stocks rose for a third straight day as investors cautiously built up positions, tracking a continuous recovery in mainland shares after China launched a fresh crackdown on margin lending.
The Hang Seng index rose 1.3 percent to end the day at 25,224.01 points, the highest close since July 6, while the China Enterprises Index gained 1.2 percent to close at 12,003.83 points.
China stocks, led by small caps, extended their recovery for a third day, raising hopes that measures taken by Beijing to prevent a full-blown market crash have worked.
Gaming stock Sands China led gains in the Hong Kong blue-chip index, rising 4.7 percent. It was followed by Hang Lung Properties and China Resources Power , both up 4.6 percent.
Guangzhou Automobile Group led rises in the China companies index, soaring 6.3 percent. It was followed by China Longyuan Power with a 5.4 percent increase, and Dongfeng Motor, up 4.5 percent. (Reporting by Donny Kwok; Editing by Richard Borsuk)