Chinese stocks closed solidly higher on Monday as the market continued to bask in policies launched by the government last week to avert a market meltdown, dealers said.
The government moves to slow the rout – which saw trillions wiped off capitalisations and roiled regional markets – include a police crackdown on short-selling and a ban on big shareholders and company executives from selling stock for six months.
The benchmark Shanghai Composite Index added 2.39 percent, or 92.59 points, to 3,970.39 on turnover of 782.4 billion yuan ($128.0 billion). It rose as much as 3.93 percent to trade above the symbolic 4,000-point level during the day.
Shanghai has risen 13 percent in the past three trading days, but is still down 23 percent from its closing peak on June 12. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, jumped 4.18 percent, or 84.99 points, to 2,120.25 on turnover of 391.8 billion yuan.
“The market is still recovering from earlier falls helped by the government’s support measures. Companies which fell too much are gradually picking up now,” Northeast Securities analyst Shen Zhengyang told AFP.
He predicted the market would continue to move higher in the short-term as heavyweight stocks recover.
