Chinese stocks rise in Hong Kong after worst week since May 2012

Chinese stocks traded in Hong Kong rose before an emergency summit in Brussels on Greece's debt crisis. Shares extended gains as European equities opened higher.

Anhui Conch Cement climbed 4.8 per cent to lead gains on the Hang Seng China Enterprises Index after slumping 11 per cent last week.

Great Wall Motor remained suspended pending a private yuan-denominated share sale.

Insurers AIA Group and China Life Insurance each added at least 2.9 per cent for the largest advances on the city's benchmark index. The Hang Seng China Enterprises Index, also known as the H-share gauge, climbed 1.5 per cent to 13,383.68 at the close, its biggest gain since June 12.

The measure sank 5.7 per cent last week for its steepest weekly drop since May 2012, while the Shanghai Composite Index tumbled 13 per cent. Mainland markets were shut on Monday for a holiday. Hong Kong's benchmark Hang Seng

Index increased 1.2 per cent to 27,080.85 on Monday, with six shares rising for each that fell.

"Investors may be expecting there will be some sort of agreement" in the Greece talks, said Ben Kwong, a director at brokerage KGI Asia in Hong Kong. "Hong Kong didn't catch up to the mainland rally" and H shares may be offering better investment value.

The mainland premium on dual-listed shares reached an almost six-year high on June 10, when Chinese A shares traded 43 per cent higher than Hong Kong H shares. The premium has since narrowed to about 26 per cent after mainland shares' rout last week.

The Stoxx Europe 600 Index advanced 2.2 per cent as Greece presented a new plan to stave off default before the emergency summit. Prime Minister Alexis Tsipras's new offer "was a good basis for progress at tomorrow's Euro summit," European Commission spokesman Martin Selmayr said in a Twitter posting.

No shares traded through the Hong Kong-Shanghai stock link on Monday because of China's holiday. Preparations for a similar connection with Shenzhen are going smoothly, the China Securities Regulatory Commission said Friday, while the Hong Kong Economic Journal said it's likely to start in September.

The Hang Seng China Enterprises Index traded at 9.5 times estimated earnings at the close, compared with 16.7 for the Stoxx Europe 600 Index and 17.8 for the Standard & Poor's 500 Index, which lost 0.5 per cent in New York on Friday. E-mini futures on the S&P 500 jumped 0.8 percent on Monday.

Huatai Securities dropped 3.7 per cent to HK$23.15, the biggest retreat since its debut on June 1. Casino operators also declined, with Wynn Macau falling 1.3 per cent to HK$13.94 and Galaxy Entertainment Group sliding 1.3 per cent to HK$34.05. Shandong Weigao Group Medical Polymer surged 9.6 per cent to HK$5.96, the most since November 14. Anhui Conch rose 4.8 per cent to HK$29.65.

AIA gained 2.9 per cent to HK$52.85 and China Life Insurance advanced 3 per cent to HK$34.40 as financial companies climbed in the afternoon.