Hong Kong and Shanghai markets rallied on Monday, each hitting a new seven-year high, as Chinese oil and shipping shares surged on reports of possible mergers among China’s largest state-owned businesses. The Hang Seng Index HSI, +1.33% was up 1.3% to 28,433.59, its best close since the end of 2007. The mainland-China-tracking Hang Seng China Enterprises HSCEI, +1.74% added 1.7%. On the mainland itself, the Shanghai Composite Index SHCOMP, +3.04% advanced 3% to 4,527.40, the first settlement above 4,500 since February 2008. Oil and shipping shares rose sharply in both markets, after a state media report said the ... (full story)