Policy support pledge boosts stock market

China shares jumped on Monday as Beijing pledged continued policy support to shore up the economy.

At close, the Shanghai Composite Index rose 0.76 percent to 3,420.57 points. The Shenzhen Component Index climbed 2.03 percent to 14,134.85 points. The tech-heavy ChiNext startup board  soared 3.6 percent.

The CSI300 bluechip index gained 0.9 percent to end at 5,046.84 points.

Turnover on the two major bourses reached 860 billion yuan (US$131.06 billion).

Foreign investors bought 7.86 billion yuan in overseas capital via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

China will maintain policy support for its economic recovery, avoiding a sudden shift in policy, to help keep economic growth within a reasonable range in 2021, Premier Li Keqiang said at the annual Central Economic Work Conference on Friday.

The conference, a gathering of top leaders and policymakers to chart the economy’s course in 2021, was watched by investors amid speculation that Beijing would make policy changes amid accelerating growth.

“Setting the tone for stable and continued policies lays a foundation for a market rally, providing opportunities for both growth and cyclical firms,” Southwest Securities analysts said in a note.

CITIC Securities said the A-share market will probably keep rising till next year with investors assured of continued policies and economic recovery.

The electrical equipment, national defense, automotive, non-ferrous metals and leisure services industries led the day’s gains.