Chinese shares close at record high

Major equity indice on China's two bourses closed at record high on Monday.

The benchmark Shanghai Composite Index reached 3,252.59 points, up 2.15 percent from the previous close, while the Composite Index on Shenzhen Stock Exchange ended at 8,785.83 points, up 2.72 percent.

The key stock index in Shanghai, which covers both A- and B-shares, peaked at 3,253.44 points and bottomed at 3,196.59 points. It rose 68.61 points from the previous close on turnover of 95.221 billion yuan (12.36 billion U.S. dollars).

The Shenzhen Component Index soared 236.63 points on turnover of 48.699 billion yuan (6.32 billion U.S. dollars).

The upward movement was led by financial and steel shares, with transactions robust in real estate, scientific and technology, telecommunications and pharmaceutical sections. More than 30 shares rose to their daily limits.

Heavyweights adjusted upward steadily. The Industrial and Commercial Bank of China rose 1.82 percent to close at 5.59 yuan, and the Bank of China went up 1.80 percent to 5.65 yuan. China Life, the country's biggest life insurer climbed up 0.91 percent to end at 27.94 yuan.

Steel shares surged by bigger margins as buyers were encouraged by rosy annual reports of steel companies.

For instance, Wuhan Iron and Steel soared 6.83 percent to 9.7 yuan, Inner Mongolia Baotou Iron and Steel rose 5.55 percent to 5.9 yuan, and Handan Iron and Steel up 3.6 percent to 6.62 yuan.

Analysts said possible regulatory factors behind the bullish market included remarks on improving corporate governance recently made by Gui Minjie, vice chairman of China Securities Regulatory Commission, and CSRC's publishing of regulations on management of futures companies and futures exchanges, which are rules supporting regulations on futures trading, to solicit public opinions

On Monday, the Hushen 300 Index, which reflects the whole fluctuation of China's Shanghai and Shenzhen stock exchanges, closed at 2,850.11 points, up 68.32 points, or 2.46 percent, from the previous close.

Source: Xinhua