Chinese shares climb sharply on Monday

Chinese shares climbed sharply on Monday, driven up by financial and property shares.

The benchmark Shanghai Composite Index, which covers both A- and B-shares, climbed by 4.15 percent to 2,180.5 points while the Shenzhen Component Index went up 5.49 percent to 5,951 points.

The sharp increase followed a slump of nearly 4 percent in both the Shanghai and Shenzhen markets on Friday.

Dealers attributed the recent sharp market fluctuation to the profit-making activities by some investors after seeing the index increase steadily throughout the year.

Some investors that are optimistic about the future of China's economy may have capitalized on the recent dive by buying shares at lower costs, analysts said.

The share price of the Bank of China rose 0.09 yuan or 2.48 percent to 3.72 yuan. The Industrial and Commercial Bank of China, the No.1 heavyweight on the mainland market, was up 0.21 yuan or 5.43 percent to 4.08 yuan.

Real estate shares also performed well. The Shenzhen-based Vanke Company, a well-known property developer in China, jumped 10 percent to 12.79 yuan. The Shanghai Zhangjiang Hi-Tech Park Development, rose 10 percent to 6.83 yuan.

Telecommunications shares have attracted much attention recently due to the impending issuance of the country's 3G mobile communication network license. The Eastern Communications rose 10 percent to 4.54 yuan and the blue-chip China United Telecommunications Corporation rose 8.03 percent to 3.90 yuan.

On Monday, the Shanghai B-share (overseas-currency-dominated) Index rose 3.02 percent to 121.15 points with the total turnover amounting to 533.90 million U.S. dollars and the Shenzhen B-share Index was up 3.30 percent at 395.32 points, with a turnover of 467.32 million Hong Kong dollars (60.07 million U.S. dollars).

Source: Xinhua