Chinese shares close up by more than 2 percent

Chinese stock markets closed about 2 percent higher on Monday with prices of most shares going up after drastic fluctuations last week.

The Composite Stock Index on the Shanghai Stock Exchange, which comprises yuan-denominated A shares and foreign-currency B shares, closed at 1,648.54 points, up by 34.64 points, or 2.15 percent. Total turnover was 29.3 billion yuan (3.66 billion U.S. dollars).

The major index of Shenzhen Stock Exchange, the Shenzhen Component Index, was up 2.63 percent to close at 4,327.89 points, with a total turnover of 18.3 billion yuan.

Prices of 1,080 shares were up with those of 22 shares staying at previous levels while the prices of 70 shares were down.

Share prices of companies specialized in liquor and foodstuff shares and steel shares grew by an average 5 percent, which, analysts said, helped improve the confidence of investors.

Chen Zhiguo, an analyst with Jiangnan Securities Co., said the strong market performance indicates the two markets are expected to go up in coming trading sessions after last week's downward readjustment.

Source: Xinhua