China stocks head for best monthly gain in 2 years, Hong Kong lags
* HSI -0.1 pct, HSCE +0.5 pct, CSI300 +0.5 pct, SSEC +0.7 pct
* Mainland shares up for seventh day, consolidation expected
* Energy shares extend losses on lower oil price
SHANGHAI, Nov 28 (Reuters) - China stocks rallied for the seventh straight session on Friday and looked headed for their biggest monthly gain in nearly two years as a surprise interest rate cut and hopes of further policy easing re-ignited demand for mainland shares.
Investors had snapped up shares in the lead-up to the launch of the Shanghai-Hong Kong stock connect scheme earlier this month but they moved to book profits following the debut amid a weaker-than-expected response for northbound investment.
The rate cut by the central bank late last week to support the cooling economy and expectations of further monetary easing has added fresh optimism into the market, lifting key indexes to multi-year highs.
However, technical indicators point to the main indexes as being overbought, which could leave them vulnerable to profit-taking in the near-term.
"The index has reached a very high level in a short period of time," said Liu Jingde, analyst at Cinda Securities in Beijing.
The CSI300 index rose 0.5 percent to 2,768.68 points at the end of the morning session, while the Shanghai Composite Index gained 0.7 percent, to 2,649.57 points. The indices were at their highest level since February 2013 and August 2011, respectively. Continuación...