Brokerages lead as stocks rally by most in 4 months

Gauge of financial firms surges by 4.5 percent from its lowest level

Chinese mainland equities rallied the most in four months, led by brokerages and energy companies, as investors sought companies that have underperformed the benchmark equity index amid a flood of new share sales.

A gauge of financial companies soared 4.5 percent from its lowest level in six weeks as Huatai Securities Co and Changjiang Securities Co climbed by the 10 percent daily limit. PetroChina advanced 2.9 percent after tumbling almost 20 percent from its April high. The ChiNext index of smaller companies advanced 1.4 percent to a record high. Shanxi Yongdong Chemistry Industry Co and Tanac Automation Co both soared 44 percent in their Shenzhen trading debut.