* China small-cap stocks firm on launch of start-up market * HK stocks gain on abundant liquidity; CCB, CNOOC rise (Updates to close)
By Claire Zhang, Edmund Klamann and Donny Kwok HONG KONG/SHANGHAI, Oct 23 (Reuters) - Stock markets in Hong Kong and China rose on Friday as hopes for strong Chinese corporate earnings, riding on a recovery in China's economy, boosted sentiment.
China's key stock index jumped 1.85 percent on Friday, led by energy and metals shares on firmer commodity prices, posting a third straight week of gains as confidence mounted in the economic recovery.
The Shanghai Composite Index ended at 3,107.847 points, its highest close in 10 weeks and marking a 4.4 percent rise for the week.
Shenzhen-based companies and small-cap shares were firmer, buoyed by the scheduled launch of ChiNext, China's long-awaited Nasdaq-style second board for start-ups which is holding an official launch ceremony on Friday afternoon in Shenzhen and will start trade in its first 28 stocks on Oct. 30.
The first batch of ChiNext-listed companies drew strong investor interest in their initial public share offerings and are expected to reach hefty share valuations in their trading debut.
Among resource shares, China Shenhua Energy climbed 3.22 percent to 36.88 yuan, while Aluminum Corp of China Ltd jumped 3.34 percent to 14.83 yuan.
The official Shanghai Securities News reported that after China's economic growth picked up in the last quarter, as seen in Thursday's strong GDP data, several fund houses expected earnings at listed companies to be upbeat in the fourth quarter.
A Ministry of Commerce researcher also said in remarks published on Friday that China's exports were likely to resume year-on-year growth this quarter as global trade slowly recovers.
"The index is expected to rise as the economic recovery gains strength in the fourth quarter, while ChiNext is also boosting sentiment," said Chen Shaodan, senior analyst at Stockfly Securities in Beijing.
Gaining Shanghai A shares outnumbered losers by 753 to 134, while turnover rose to 157 billion yuan ($23 billion) from Thursday's 119 billion yuan.
The SME Composite Index of the Shenzhen Stock Exchange, which is dominated by shares of small and medium-sized enterprises, rose 1.28 percent to 4,926.140 points, nearing its year high of 5,007.040 set in early August.
Newly listed small shares in Shenzhen were active, with Luolai Home Textile jumping 5.23 percent to 33.78 yuan, while Shenzhen World Union Properties Consultancy <002285.SZ> rose 3.05 percent to 51.39 yuan.
China Construction Bank <601939.SS> gained 2.88 percent to 6.07 yuan ahead of its third-quarter earnings report due for release after the market close, while Merchants Bank <600036.SS> rose 4.48 percent to 17.71 yuan.
"The index could rise next week on rosy expectations for banks' third-quarter earnings," said Wu Nan, an analyst at Xiangcai Securities in Shanghai.
Analysts said the index appeared likely to hold firm above 3,100 points and extend its gains by at least 100 points.
HONGKONG UP ON ABUNDANT LIQUIDITY
Hong Kong stocks rose 1.71 percent to a 14-month closing high on Friday as finance shares rebounded and with abundant liquidity building investor confidence in further gains for the market.
"Although it was ahead of the long weekend, no one wanted to sell in such a buoyant market, which was still trending up while sentiment remained positive," said Conita Hung, head of equity research of Delta Asia Financial.
Hong Kong markets will be closed on Monday for the Chung Yeung Festival.
The benchmark Hang Seng Index rose 379.21 points to end at 22,589.73, its highest close since Aug 1, 2008. The index rose 3 percent for the week, its third consecutive week of gains.
The China Enterprises Index of top locally listed mainland Chinese stocks was up 2.75 percent at 13,316.02, its highest close since June 6, 2008. Turnover rose to about HK$76 billion ($9.8 billion), from Thursday's HK$69.95 billion.
"Anticipation of strong quarterly earnings from Chinese enterprises and ample liquidity aided investors building up confidence for further upside," Hung said.
China's largest lender ICBC rose 2.84 percent to HK$6.51, its highest close since Nov. 7, 2007. The country's second-largest lender China Construction Bank gained 1.73 percent to close at HK$7.05 ahead of the release of its third-quarter earnings due later Friday.
Chinese insurer China Life surged 5.74 percent to a 22-month closing high at HK$37.75, and PICC jumped 10.47 percent to a more than two-month closing high at HK$6.12.
Hong Kong's central bank, the Hong Kong Monetary Authority, has repeatedly injected money to contain an appreciating Hong Kong dollar. It intervened three times on Friday, injecting a total HK$9.688 billion ($1.25 billion) as of 0855 GMT after putting in a total of HK$8.138 billion on Thursday.
Higher oil price helped boost China's leading liquefied natural gas (LNG) developer CNOOC Ltd to end at HK$12.90, its highest close since July 14, 2008. (Editing by Chris Lewis)