HK shares surge on derivatives-related buying

HONG KONG, Sept 4 (Reuters) - Hong Kong shares jumped as much as 3.2 percent in late Friday trade on derivatives-related buying ahead of the weekend, but gains were pared shortly after.

"The index surged above the 20,000 level fuelled by short covering on index-linked derivatives," said Patrick Yiu, a director at CASH Asset Management.

The benchmark Hang Seng Index .HSI hit a high of 20,387.94 before trimming gains to 2.50 percent as of 0721 GMT. (Reporting by Alison Leung; Editing by Jonathan Hopfner)