Sharp gains add to previous stocks rises
China stocks posted sharp gains on Monday to extend rises in the previous session, with the military industry and the non-bank financial sector performing strongly.
The benchmark Shanghai Composite Index jumped 2.64 percent to end at 3,358.47 points, while the smaller Shenzhen Component Index surged 3.15 percent to 13,708.07 points. The ChiNext Composite Index, meanwhile, soared 3.91 percent to 2,777.39 points.
Trading volume on the two bourses added up to 971.4 billion yuan (US$144.12 billion), expanding sharply from the 711.3 billion yuan in the previous session. The Shanghai Stock Exchange posted a total turnover of 355.7 billion yuan, up 91.6 billion yuan from the previous session.
Overseas capital poured into the Chinese mainland on Monday, with a net influx of 13.51 billion yuan via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong, of which 6.98 billion yuan was a net inflow into the Shanghai market.
Sub-indexes of all industry sectors closed higher in the session, according to data from the Wind Information, with office supplies, engineering machinery, and the semiconductor industry leading the rises.
Investors are laying more focus on sectors related to the country's "14th Five-Year Plan" as well as industries and companies showing good performance in the three-quarter reports, according to China Industrial Securities.
The aerospace and military industries were among the biggest gainers. AVIC Aircraft Co and Jiangxi Hongdu Aviation Industry Co both surged by the daily limit of 10 percent, while Guangzhou Hangxin Aviation Technology Co rocketed by the maximum 20 percent on the ChiNext board.
Among non-bank financial shares, insurance company Xishui Strong year Co and brokerages Sealand Securities Co and Guosen Securities Co advanced by over 8 percent.
Meanwhile, stocks related to digital currency also performed well, with ChiNext-listed Shenzhen Forms Syntron Informaiton Co and Brilliance Technology Co both hitting the 20 percent daily cap.
Liquor shares, computer hardware firms, and petrochemical companies were also among the big gainers.