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Stocks in mainland China closed sharply higher on Monday as traders welcomed a series of measures by the country’s leaders aimed at revitalizing the world’s second-largest economy.
The Shanghai Composite Index rose 8.06% (248.97 points) to 3,336.50, and the Shenzhen Composite Index on China’s second exchange rose 10.93% (189.91 points) to 1,927.48. Hong Kong rose more than 3% in the afternoon.
Policies announced last week included lowering interest rates, easing the amount banks must hold in reserves and relaxing regulations on home purchases.
And on Monday, three major cities – Shanghai, Guangzhou and Shenzhen – further eased restrictions on home purchases, and six major Chinese banks announced they would adjust existing mortgage rates in response to a request from the People’s Bank of China to lower them.
The market has come under intense pressure in recent years as traders worry about a government crackdown on various sectors, with real estate and tech being the worst affected.
But according to the latest announcements from Beijing, Shanghai rose more than 20% in the past six trading days, while Shenzhen rose by almost a third, with developers and tech companies leading the gains.
Kaisa was the best performer in Hong Kong, up nearly 60%, while e-commerce giant JD.com rose more than 10%, and in Shanghai, CITIC Securities rose 10%.
Dan/Sam
