Shanghai stocks bolstered by stimulus hopes

Shanghai stocks rose on Monday as market confidence improved after a government official said China will release a batch of forceful and targeted policies to further boost its economy.

The Shanghai Composite Index added 0.5 percent to close at 2,852.55 points.

Medical equipment, building materials and computer stocks were among the biggest gainers. 

Investors turned optimistic after the National Development and Reform Commission (NDRC) said on Monday that the country has plenty of room to manoeuvre in its macroeconomic policy to cushion the impact of the COVID-19 pandemic.

Yan Pengcheng, an official with the NDRC, said that potential measures include increasing the fiscal deficit, issuing special treasury bills, ramping up local government special bond quotas, spurring spending in key projects and cutting banks' reserve requirement ratio and interest rates.

The commission also said on Monday that China will strengthen top-level design and issue guidelines to promote the development of new infrastructure such as 5G networks, artificial intelligence, industrial Internet and Internet of Things.

Bright Dairy & Food Co Ltd rose 5.2 percent to 12.33 yuan (US$1.74) and Shanghai No.1 Pharmacy Co Ltd climbed 4.97 percent to 10.34 yuan.