Major equity indices for China's two bourses closed up at record high on Monday, but with combined turnover shrinking moderately to 225.605 billion yuan (29.3 billion U.S. dollars) from the previous trading day.

The benchmark Shanghai Composite Index ended Monday's trading at a new high of 3,596.44 points, up 78.17 points, or 2.22 percent, from the previous close on a daily transaction volume of 146.759 billion yuan (19.1 billion U.S. dollars).

The key stock index, which covers both yuan-denominated A-shares and foreign-currency-denominated B-shares, moved between 3,523.22 points and 3,597.22 points, ready to challenge the 3,600-point barrier.

The Component Index on the Shenzhen Stock Exchange rose 229.18 points, or 2.29 percent, to conclude the trading day at record 10,249.10 points on turnover of 78.846 billion yuan (10.2 billion U.S. dollars).

Shanghai stock exchange recorded 797 gainers and 30 losers with 65 shares unchanged, while the Shenzhen bourse saw 564 gainers and 27 losers with 65 shares unchanged.

Shares in harbor, railway and power supply sectors were mostly in favor, while those from education, media, coal, oil, building materials and 3G telecommunications sectors also recorded eye-catching performance.There were 57 stocks up to their rising limits on the two bourses.

Heavyweights all reported upward adjustments.

The Industrial and Commercial Bank of China rose 1.28 percent to 5.52 yuan, the Bank of China went up 1.04 percent to 5.82 yuan, and China Life, the nation's largest life insurer, up 1.64 percent to 38.31 yuan.

To shore up the bullish run, RMB's value hit a new high at 7.7220 yuan against one dollar on Monday, analysts said. Many shares have been benefited from the appreciation of the local currency. Robust capital inflow, which was shown in China's increasing foreign exchange reserves, also drove up the mounting liquidity on the Chinese equity markets.

Regulatory factors behind the Monday market performance included proposals on deepening restructuring of power industry, according to the analysts.

They believed factors that may affect future market mood were inflation pressure, expectation for further interest rate hikes, escalating trade frictions between China and the United States and upcoming major IPOs,including those of the Bank of Communications and CITIC Bank.

It was estimated that China's consumer price index, or CPI, breached the three-percent barrier in March, though the official figure has not yet been released.

The U.S.-China Joint Economic Committee will hold a meeting on trade disputes between the two nations in Washington D.C. on Monday.

On Monday, the Hushen 300 Index, which tracks 300 companies on Shanghai and Shenzhen stock exchanges, closed at 3,256.00 points, up 86.77 points, or 2.74 percent, from the previous close.

Source: Xinhua