HONG KONG (Dow Jones)--Hong Kong shares ended higher Thursday, led by exporter Li & Fung, although early gains that tracked overnight rises in the U.S. narrowed late in the session because of weakness in Chinese equities markets.

The blue chip Hang Seng Index rose 50.48 points, or 0.3%, to 20,585.33 after rising to an intraday high of 20,975.30 during the morning session. Market volume totaled HK$87.06 billion, up from HK$75.26 billion Wednesday.

Gains of the city's benchmark index were narrowed in ...