Mainland stocks at 3-week high in Hong Kong

Chinese mainland stocks rose to a three-week high in Hong Kong as brokerages rallied after Guotai Junan International Holdings Ltd said its chairman will resume his duties and Haitong Securities Co halted a share buyback plan announced during the midst of the rout for mainland stocks.

Hong Kong's Hang Seng China Enterprises Index increased 1.6 percent at the close. Guotai Junan jumped the most in seven weeks, while Haitong Securities advanced to a one-month high. Oil companies also rallied, led by PetroChina Co and China Petroleum & Chemical Corp. The Shanghai Composite Index fell 0.4 percent, halting two days of gains.

The return of Yim Fung as chairman and chief executive officer of Guotai Junan after a five-week absence to aid investigations by Chinese authorities will alleviate investor concerns, according to Phillip Securities Research. The government has been clamping down on malpractice in the securities industry since the $5 trillion rout this summer.