Chinese mainland insurers' stocks increase in Hong Kong trading

Chinese mainland stocks in Hong Kong posted their biggest gain in a month as insurers rallied.

The Hang Seng China Enterprises Index climbed 1.6 percent to 9,840.26 at the close. Insurers accounted for five of the seven biggest gainers, with China Life Insurance Corp having its largest one-day advance since August 2015. Analysts saw a range of reasons for the sudden rally, from speculation that Chinese mainland pension funds are about to enter the stock market to bets higher borrowing costs would boost investment yields.

Investors have been waiting for the country's local retirement savings managers to put their money into equities after policy makers announced rule changes in 2015. The mainland last week raised the interest rates it charges in open-market operations and on funds lent via its Standing Lending Facility.