SHANGHAI: Mainland China stocks closed higher on Monday, lifted by the coal sector after the country’s worst mine disaster in 17 years raised expectations that stricter safety scrutiny would tighten supply, while semiconductor shares also aided the market.
Chinese coking coal prices soared to their highest in nearly two weeks and a sub-index tracking the coal industry jumped 2.6percent after the accident late on Friday.
Brokerage shares advanced after China announced a major crackdown on cross-border investment and said it would punish brokers it accused of illegally moving money to foreign markets. The CSI all share investment banking and brokerage index ended 1percent higher, while major Chinese brokerages China Merchants and CITIC Securities edged higher.
At the close, the benchmark Shanghai Composite index was up 1percent, while China’s blue-chip CSI300 Index rose 1.6percent. “The actual impact (of the crackdown) on Hong Kong stocks and Chinese ADRs in the broader market is relatively limited, and the trend toward improved liquidity in the Hong Kong stock market will remain unchanged,” analysts at SWS Research said in a note.
“In the short term, the impact on the market is primarily psychological; in terms of liquidity, the actual impact on large-cap blue-chip stocks in overseas markets is minimal.”
Hong Kong markets were closed for a public holiday, and will resume trading on Tuesday. “Growth momentum has strengthened, market sentiment has clearly turned more positive, and the sustained recovery in the property market has further improved confidence,” said Wee Khoon Chong, APAC macro strategist at BNY. “These factors have supported Hong Kong’s capital markets, as evident in the sharp pickup in IPO activity since the second half of 2025, which has continued into 2026.”
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