Stamp duty cut, other measures boost Chinese stocks

China's A-share market saw robust gains on Monday, stimulated by a package of positive measures issued by financial authorities over the weekend to revitalize the capital market and boost investor confidence.

Chinese stocks surged across the board on the day. The benchmark Shanghai Composite Index closed up 1.13 percent at 3,098.64 points, while the smaller Shenzhen Component Index advanced 1.01 percent to 10,233.15 points.

The Nasdaq-Style SSE STAR 50 Index, meanwhile, also closed 1.13 percent higher at 880.19 points, and the ChiNext Index was up 0.96 percent to 2,060.04 points.

Multiple positive factors emerged over the weekend. China's Ministry of Finance and the State Taxation Administration announced that the 0.1 percent stamp duty on securities transactions will to halved, officially taking effect from Monday, in a further attempt to spur trading and boost investor confidence. Of note, it was China's first stamp duty reduction since 2008.

Also on Sunday, the China Securities Regulatory Commission moved to lower the minimum margin ratio of financing for buying stocks from 100 percent to 80 percent, which will come into effect after the closing bell on September 8.

It is worth mentioning that some trading software providers have informed securities firms of the suspension of the quantitative same-day (T+0 settlement) algorithmic trading on Monday. This decision was made due to concerns about the strategy encountering one-sided market conditions, which could lead to increased risk exposure.

As for sectors, the real estate industry led the gains on the bourse on Monday, with the sub-index up 4.15 percent, according to Wind Information. Coal firms, household goods companies, and diversified financial shares were also among those performing strongly.