Hong Kong stocks inched up on Monday to post monthly gains, as the Chinese mainland’s three-child policy powered birth- and fertility-related stocks.

The Hang Seng index rose 0.1 percent to 29,151.80, while the China Enterprises Index gained 0.9 percent to 10,889.12 points.

Leading the gains, the Hang Seng healthcare index jumped 4.1 percent, while Hang Seng IT index rose 3.6 percent.

Shares in birth- and fertility-related companies listed on the Chinese mainland and in Hong Kong surged after the Chinese mainland said married couples may have up to three children, a major policy shift from the existing limit of two after recent data showed a dramatic decline in births.

Suzhou Basecare Medical Corp Ltd, Jinxin Fertility Group Ltd, Aidigong Maternal & Child Health Ltd and Goodbaby International Holdings Ltd surged between 15.1 percent and 30.9 percent.

Shares of Chinese food delivery giant Meituan closed 10.9 percent higher, after the Tencent-backed company on Friday reported better-than-expected quarterly revenue.

For the month, HSI gained 2.3 percent, while HSCE firmed 0.6 percent, as inflation fears decreased both at home and abroad.