Financial sector leads charge
|
The sub-index of banking stocks surged 7.45 percent on Monday, the biggest daily gain among industry groups. Xie Zhengyi / for China Daily |
Better-than-expected economic data, optimism about Shanghai's free trade zone and growing talk of financial reform propelled the benchmark Shanghai Composite Index to its biggest daily gain in nine months on Monday.
The index was up 3.4 percent at 2,212.5 points, its largest advance since Dec 14, when it surged 4.3 percent. It was the first time the index passed the 2,200 mark in the past three months.
The index opened higher and soared after the mid-day break. Volume hit 178.9 billion yuan ($29.2 billion), the highest since May 2011, when the gauge slid below the 3,000 mark.
The smaller Shenzhen Component Index rose 2.71 percent to 8,504.74.
Leading blue chip shares in banking, insurance and securities were heavy gainers, with Shanghai Pudong Development Bank Co, Agricultural Bank of China, Bank of Communications Co, Industrial Bank Co and Ping An Bank Co all surging by the daily limit of 10 percent.
The sub-index of banking stocks surged 7.45 percent on Monday, the biggest daily gain among industry groups, according to sohu.com.
"It is rare to see blue chips move by the daily limit, and the surges by Shanghai Pudong and Agricultural Bank had a lot to do with their participation in a pilot program that allows some lenders to raise funds by issuing preferred shares," said Wang Jianhui, an analyst from Southwest Securities Inc.
