China stocks rally to 7-month high

Chinese stocks climbed to a seven-month high on Monday amid optimism about the upcoming Shenzhen-Hong Kong Stock Connect and speculation about property merger and acquisition activity.

The Shanghai Composite Index surged by as much as 2.44 percent, closing at 3,125.2 points, led by financial companies and property developers. Nine real estate companies, including China Vanke Co, Langfang Development Co and Huafa Industrial Co, climbed by the daily limit as the top performers in the market.

The Shenzhen Component Index rose by 2.79 percent, while the ChiNext startup index climbed by 3.27 percent.