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Hong Kong Stocks Rise to 21-Month High as Shanghai Halts Decline

  • Some shares appeared very cheap after recent drops, CEB says
  • Coal-fired generator companies rise on proposed merger plan
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Photographer: China Photos/Getty Images
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Hong Kong shares rose to the highest close since July 2015 as commodities gained, while shares in China snapped a five-day losing streak after technical indicators signaled that the slide may have been overdone.

The Hang Seng Index climbed 1.3 percent to 24,889.03 at the close. China Resources Power Holdings Co. led the advance, climbing the most in 14 months after China was said to be considering plans to create three energy giants through mergers of eight companies. China Petroleum & Chemical Corp. rose 2.5 percent after crude oil gained. The Shanghai Composite Index pared early losses to close 0.1 percent higher.