SHANGHAI: China shares closed at their highest in more than a month on Monday after the central bank injected fresh funds into the country's financial system, with securities firms rallying on hopes for a lift from capital market reforms.
At the close, the Shanghai Composite index was up 2.34% at 3,438.80 and the blue-chip CSI300 index added 2.35%. Both indexes notched their highest closes since July 13. The financial sector sub-index ended 3.58% higher, propelled by securities firms, which gained 5.07%.
Brokerages' shares rose after Shenzhen Stock Exchange said on Friday that the first batch of companies registered for listing on Shenzhen's ChiNext start-up board under a revamped initial public offering system will make their debuts on Aug. 24.
Further bolstering sentiment, China's central bank issued medium-term loans worth 700 billion yuan ($100.86 billion) to financial institutions on Monday, rolling over 550 billion yuan of such loans maturing in August and injecting a further 150 billion. It left borrowing costs unchanged.
The smaller Shenzhen index ended up 1.92% and the start-up board ChiNext Composite index was 1.04% higher. So far this year, the Shanghai stock index is up 12.7% and the CSI300 has risen 17.5%, while China's H-share index listed in Hong Kong is down 6.7%. Shanghai stocks have risen 3.89% this month.
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