HONG KONG - Chinese shares listed in Hong Kong posted their biggest gain in nearly two years on Monday, led by non-banking financial and consumer counters as investors cheered The China Enterprises Index of the top Chinese listings in Hong Kong soared 5.7 percent in its biggest daily gain since Dec 1, 2011. The Hang Seng Index ended up 2.7 percent at 23,660.1 points, its highest close since Feb 4.

Gains came in the strongest turnover also since Feb 4, totalling some $14.5 billion. The Hang Seng A-H share index closed at its lowest since December 13, suggesting H-shares are now trading at their biggest premium to the onshore markets in 11 months after Monday's outperformance.

HSBC Global Asset Management expects emerging markets to play catch-up with stocks in the developed world, with Chinese shares well positioned to lead the rebound, its Asia-Pacific chief investment officer told the Reuters Global Investment Outlook Summit in Hong Kong.

UBS Asia equity strategists upgraded their view on China H-shares to overweight from neutral, believing a Chinese re-rating is likely to steal the limelight after Beijing surprised on the scope and tone of the document containing details of reforms agreed to at this month's party plenum.

The document, released on Friday, relaxed China's one-child policy and further frees up markets in order to put the world's second-largest economy on a more stable footing.

Citic Securities, China's largest listed brokerage, surged 13 percent in a record gain in Hong Kong, while infant formula producer Yashili spiked 9.7 percent to a record high.