Policy for domestic demand boosts stocks

Shanghai stocks rose on Monday as investor sentiment was lifted after the news that the country will step up fiscal policy support for a strategy to make its economy mainly rely on domestic demand, supply chains and innovation. 

The benchmark Shanghai Composite Index added 0.66 percent to close at 3,369.12 points. The smaller Shenzhen Component Index jumped 1.01 percent to finish at 13,692.13 points.

Combined turnover on the two bourses came to 709.7 billion yuan (US$108.4 billion), compared with 834.9 billion yuan in the previous session.

Shares of consumer firms, automobile companies and farming enterprises were among the biggest gainers.

Market sentiment improved after Finance Minister Liu Kun said the government will take steps to boost domestic consumption, including expanding public consumption and increasing imports of high-quality goods to help upgrade domestic consumption.

A total of 61 listed firms posted gains of more than 9 percent, while 29 declined by over 9 percent.

Guotai Junan Securities said the stock market is expected to rebound and is optimistic about its mid-term and long-term development. The firm suggests paying attention to industries such as new-energy vehicles, photovoltaics and home appliances.