China stocks close above 2,900 points

China stocks rebounded on Monday with the benchmark Shanghai Composite Index rising 0.62 percent to 2,909.2 points. The smaller Shenzhen Component Index jumped 0.7 percent to 9,715.27 points, while the blue chip CSI300 index closed 0.8 percent higher at 3,907.93 points.

Total turnover on the two major bourses, however, shrank sharply to 364.23 billion yuan (US$51.95 billion) compared with the 402.075 billion yuan in the previous session. Shares in 53 companies listed on the A-share markets surged by the daily limit of 10 percent.

Shares related to OLED performed strongly, with Anhui Guofeng Plastic Industry Co, Dalian Zhiyun Automation Co and Shenzhen Liande Automatic Equipment Co all skyrocketing by the 10 percent cap. The jump was partly boosted by the fact that thebHuawei Mate X 5G foldable phone sold out in less than a minute last Friday in spite of costing 16,999 yuan (US$2,423).

The iron and steel sector was among the biggest gainers. Zhejiang Jiuli Hi-tech Metals Co soared by the maximum 10 percent, SGIS Songshan Co advanced 6.53 percent, while Fangda Special Steel Technology Co rose 4.59 percent.

Domestic demand for steel cooled in October, with steel prices retreating from an earlier rise, the China Iron and Steel Association said on Monday. The country's crude steel daily output was 2.63 million tons last month, down 4.7 percent month on month and down 0.6 percent from a year earlier.

As the weather turns cold, market demand will continue to decline while steel production will also be reduced, thus the market will remain generally stable, according to the association.

In terms of non-bank financial shares, Nanhua Futures Co and Ruida Futures Co both jumped by 10 percent while The Pacific Securities Co rose 7.24 percent.

The catering and tourism sector, building material firms, banks and media shares all posted gains.