Chinese stock markets closed higher on Monday thanks to the strong performance of bellwhether blue chip shares.

The Composite Stock Index on the Shanghai Stock Exchange, which comprises mainly yuan-denominated A shares and foreign-currency B shares, closed at 1,378.61 points, up 1.4 percent.

The major index of the Shenzhen Stock Exchange, the Shenzhen Component Index, was up 0.02 percent to close at 3,345.63 points.

Total turnover of the two markets stood at 34.2 billion yuan (42.75 billion US dollars).

Dealers said the strong growth of shares of such major blue chip companies as oil giant Sinopec, steel giant Baosteel, Yangtze Hydroelectric Power and major mobile telecommuncation operator China Unicom helped consolidate the confidence of cautious market participants.

The share price of Sinopec was up by 6.38 percent to close at 5.50 yuan.

Analysts said the strong performance of the blue chips helped offset negative impact of upcoming approval of rules on investment by domestic institutional investors in overseas markets.

But share prices of resources and real estate companies went down after substantial price hikes during the past few weeks.

Source: Xinhua