China stocks notch best day in 3 months as investors cheer policy support
- The blue-chip CSI300 index rose 3pc to 4,823.16, its best day since July 6, while the Shanghai Composite Index gained 2.6pc to 3,358.47 points, its best session since July 20.
SHANGHAI: China stocks extended their rally on Monday to post their biggest daily percentage gain in three months, as investors cheered Beijing's latest policy support for equity markets.
The blue-chip CSI300 index rose 3pc to 4,823.16, its best day since July 6, while the Shanghai Composite Index gained 2.6pc to 3,358.47 points, its best session since July 20.
The tech-heavy start-up ChiNext added 3.9pc and the STAR50 index rose 1.7pc.
Leading the gains, the CSI300 financials index and the CSI300 consumer staples index ended up 3.2pc and 4.4pc, respectively.
Session's gains came in after the index closed higher on Friday, with investors being encouraged by official data that showed signs of economic recovery and a rebound in tourism during the holiday week.
China's state council published on Friday the Opinion on Further Improving the Quality of Listed Companies, which includes exploring more long-term evaluation mechanisms for institutional investors to attract more mid and long-term funds.
China needs to foster a robust market environment now as the country's tech firms need financing from the equities market, said Yan Kaiwen, an analyst with China Fortune Securities.
Given the policy support, a slow and stable market rally is definitely the big trend going ahead, as the opinion once again stressed the position of China's capital markets, Yan added.
Guotai Junan Securities also noted in report that the opinion will help boost risk appetite in the market.
Foreign investors came back with vehement buying, purchasing a net 15.9 billion yuan ($2.37 billion) worth of A-shares on Monday via the Stock Connect linking mainland and Hong Kong, according to Refinitiv data.
Chinese President Xi Jinping will deliver a key speech in Shenzhen on Wednesday to mark the anniversary of the establishment of China's first special economic zone in the southern city 40 years ago, according to state media Xinhua.
Shares of Shenzhen-based companies jumped on Monday, as investors cheered Beijing's support for the country's first special economic zone.
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