Chinese stocks rise to two-month high

Hong Kong - Chinese companies traded in Hong Kong headed for a nearly two-month high, as oil companies rallied after the Organisation of Petroleum Exporting Countries (Opec) reached a deal and amid optimism the mainland economy is stabilising.

The Hang Seng China Enterprises Index rose 1% as of 1:07 local time. China Oilfield Services and PetroChina Company led the gains with jumps of at least 5.5% after oil surged 9.3% in New York.

Opec agreed to reduce collective production to 32.5 million barrels a day, Iranian Oil Minister Bijan Namdar Zanganeh said in Vienna on Wednesday.

The Shanghai Composite Index gained 0.5% after data showed China’s official factory gauge climbed to the highest since July 2014.

"The news was out of expectations and had an impact on oil plays - but it may not be long lasting," said Linus Yip, a Hong Kong-based strategist at First Shanghai Securities.

"We can see that Chinese economy is being well maintained at current levels. Markets have a chance to test higher in December."

The H-share index capped its biggest monthly gain since February as a rally by insurers and brokerages helped reverse losses.

Insurers jumped amid bets their investment returns will increase with rallying mainland markets.

The Shanghai Composite Index is headed for a jump of more than 8.5% this quarter as the roll out of property curbs boosted the lure of equities and as so-called old economy companies climbed due to optimism China’s authorities will lift fiscal spending to stimulate growth.

The Hang Seng China Enterprises Index rose to 9 931.15, while the Shanghai Composite Index traded at 3 267.22.

China’s manufacturing purchasing managers’ index rose to 51.7 in November, the National Bureau of Statistics said, as a credit-fuelled recovery of smokestack industries helped steady the economy.

A Bloomberg survey of economists found a median estimate of 51.

The non-manufacturing PMI was at 54.7 compared with 54 in October. Numbers higher than 50 indicate improving conditions.

The Hang Seng Index advanced 0.6%, with volume that was 76% more than its 30-day average at the time of day, according to data compiled by Bloomberg.

CT Environmental Group tumbled 13% as it resumed trading following the company’s rebuttal to allegations made by short seller Glaucus Research Group.