Chinese stock market continues its strong performance
Chinese stocks remained strong on Monday as startups showed upward momentum with investors expecting small-cap shares to benefit from a proposal to delay reforms for initial public offerings (IPOs).
The benchmark Shanghai Composite Index advanced 1.23 percent to 3,329.57 points and turnover was 213.3 billion yuan(US$33.8 billion).
Financial shares and brokerages pushed up the index. GF Securities advanced 2.41 percent to 16.99 yuan and Sinolink Securities jumped 2.89 percent.
China Securities Regulatory Commission chairman Liu Shiyu last week has submitted a proposal to the Standing Committee of the National People's Congress to allow the State Council two more years to adjust the stock listing system from approval-based to registration-based till the end of February in 2020.
"The delay of the IPO registration scheme doesn't mean a shift of IPO reform direction and it would eventually optimize the IPO mechanism to become more market-oriented and to include more companies into the equity market," Huatai Securities wrote in a research note today.
Metal producers were also among the gainers. Zijin Mining Group Co rose 1.45 percent and China Molybdenum Co hiked 7.36 percent to 8.61 yuan.
Property shares showed mixed results after home price inflation moderated in January. The number of cities with a month-on-month moderation in prices rose to 13 in January from 7 in December, while the number with flat or higher prices fell.
China Vanke Co lost 1.56 percent to 34.18 yuan and Gemdale Corporation retreated 2.07 percent to 12.76 yuan. Shimao Corporation edged up 0.75 percent to 5.34 yuan. Shanghai AJ Group picked up 1.11 percent to 12.75 yuan.