Stocks surge to 7-year high

Chinese investors look at prices of shares (red for price rising and green for price falling) at a stock brokerage house in Hangzhou city, East China's Zhejiang province,?March 30,?2015. [Photo / IC]

Chinese stocks jumped to a seven-year high on Monday amid speculation of further monetary easing and the lifting of property curbs.

The benchmark Shanghai Composite Index rallied 2.6 percent or 95.47 and closed at 3,786.57, marking a peak since 2008, led by real estate, financial and the "Belt and Road"-themed shares.

Real estate companies including Merchants Property, Poly Real Estate Group, Rongan Property and Guoxing Real estate jumped by the daily limit of 10 percent, after Shanghai Securities News claimed that the central bank was to make an important announcement at a 3:30 pm briefing.

The People's Bank of China dismissed news of such briefing. The market has been speculating that the minimum down payment ratio for second home purchases will be lowered.

Banks also led the gain on Monday, as Industrial Bank surged more than 8.8 percent, and Everbright Bank, Industrial and Commercial Bank of China and Shanghai Pudong Development Bank each gained more than 4.3 percent.

The central bank governor Zhou Xiaochuan on Sunday called for close attention to be paid to declining commodity prices before making adjustments on monetary policy, signaling the possibility of further easing to support the world's second-largest economy.

The country should be vigilant for signs of continually moderated inflation that is dragged down by weakening global commodity prices, Zhou said at the 2015 Boao Forum.

"Belt and Road"-themed stocks remained bullish, with 14 companies related to the initiative including Xinjiang Urban Construction, Xiamen Port Holding and China Communications Construction Co jumping by the daily limit.

The country's top economic planner unveiled the blueprint of the Silk Road Economic Belt and 21st Century Maritime Silk Road on Saturday.

The routes, running through Asia, Europe and Africa, aim to connect the vibrant East Asia economic circle at one end with the developed European economic circle, and promote mutually beneficial cooperation to a new high and in new forms.

The Shenzhen Component Index advanced nearly 2.5 percent to 13,193.32 on Monday. The CSI 300 Index surged 2.9 percent to 4,088.18.