Chinese shares ended three consecutive days of declines to close higher on Monday after choppy trading, boosted by small enterprises with high growth potential.
The benchmark Shanghai Composite Index went up 0.61 percent, or 12.11 points, to end at 2,004.76. The Shenzhen Component Index added 0.26 percent, or 20.24 points, to 7,684.23.
Combined turnover on the two bourses shrank to 165.5 billion yuan (26.8 billion U.S. dollars) from 209.46 billion yuan the previous trading day.
Emerging industries led Monday's rises, with the sector for environmental protection surging 5.52 percent. The print and packaging industry also gained 4.3 percent.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, rallied 3.38 percent, or 37.77 points, to close at 1,153.77 points.
Stocks in the financial sector took a roller-coaster ride on Monday as investors digested the central bank's recent move to further liberate lending interest rates for financial institutions.
The People's Bank of China said on Friday that it would allow financial institutions to decide lending interest rates themselves, helping cut enterprises' fund-raising costs and optimizing financial resources.
Following the news, the financial sector dipped during Monday's morning session but managed to rebound later, ending 0.68 percent higher at the day's close.
Banks drag Shanghai index down
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