* HK stocks up 0.3 pct at 5-mth closing high
* Property shares help HSI to 4th successive weekly gain
* HSBC weighs amid management shake-up, but off low
* New listings make strong debuts; Magic Holdings up 38 pct (Updates to close)
By Vikram S.Subhedar
HONG KONG, Sept 24 (Reuters) - Hong Kong shares closed at their highest level in five months on Friday as property plays extended their recent strong run and new issues posted solid first-day gains.
The rally in Hong Kong developers lifted the benchmark Hang Seng index by 0.3 percent to its fourth successive weekly gain. For the week, the index advanced 0.7 percent.
The benchmark has surged nearly 8 percent this month, but analysts believe further upside may be limited in the short term, noting it is now in overbought territory with its relative strength index (RSI) at 73.
"It looks like we're going to consolidate around these levels at the moment after a strong bounce this month," said Daniel So, an analyst at Sun Hung Kai Financial in Hong Kong, adding that property shares would continue to outperform.
Developers have rallied in recent sessions with the sector sub-index enjoying its best week this year, up 3.8 percent, amid robust demand for property and sustained investor interest in Asian stocks.
Low interest rates and expectations of further appreciation in the Chinese yuan, which make Hong Kong dollar-denominated assets cheaper for mainlanders, were likely to continue attracting funds into the local housing market, So said.
Asia ex-Japan equity funds had their best week of inflows in more than 15 months for the week ended Sept 22, driven mainly by interest in India and China, EPFR Global said in a note.
Cheung Kong (Holdings) Ltd, controlled by billionaire Li Ka-shing, rose 1.4 percent, building on gains after a technical breakout above its October 2009 peak.
Hong Kong Exchanges & Clearing Ltd rose 3.8 percent, bringing its gains for the month to over 21 percent, as turnover recovered in September and IPO activity in Hong Kong picked up.
Turnover on the exchange was relatively healthy at about HK$70 billion, over 16 percent higher than the daily average seen this year despite holidays on the mainland, and contrasted with the dull trading volume seen in developed markets.
New listings had a strong day and largely held onto those gains by the close.
Magic Holdings rose as much as 38 percent on its trading debut. The company, a maker of Chinese facial masks, had said in a statement that its Hong Kong IPO was subscribed to 768 times and priced at the top of the indicative range.
Europe's largest lender HSBC Holdings, which has a 15 percent weighting on the benchmark index, fell 0.6 percent, capping the Hang Seng's gains.
HSBC, which opened 1.4 percent lower, is in focus amid talk of a management shake-up, with the Financial Times saying Chief Executive Michael Geoghegan may step down by the end of the year.
China's financial markets were closed for a long holiday and will reopen on Monday. (Editing by Kim Coghill)