Markets extend lead, dairy makers lifted by contamination reports

Stock markets on the Chinese mainland climbed higher Monday to notch their fifth straight day of wins.

The Shanghai Composite Index added 21.06 points, or 1.04 percent, to end at 2,050.48; while the Shenzhen Component Index rose 98.92 points, or 1.24 percent, closing at 8,060.39.

Combined turnover at the two exchanges hit 174.58 billion yuan ($28.49 billion), 24.5 billion yuan below Friday's volume.

Shenzhen's small- and medium-sized enterprises board index advanced 2.08 percent; while ChiNext, China's NASDAQ-style growth enterprises board, climbed 1.18 percent.

Agricultural and pharmaceutical stocks performed well early on, keeping the Shanghai Composite and the Shenzhen Component hovering above par through morning trading. The indices gained momentum in the afternoon as financial service and resource equities picked up steam. Automobile, media and entertainment stocks were also actively traded.

Dairy producers got a nudge from news that potentially contaminated ingredients from New Zealand dairy giant Fonterra had been sold in China. The Chinese government urged recalls of potentially tainted products Sunday. Market leader Bright Dairy & Food Co Ltd rose by 0.15 percent on the day to 19.64 yuan.

Meanwhile, the State Council announced a plan to revitalize the nation's struggling shipping industry by 2015. Shipping stocks surged on this news. CSSC Jiangnan Heavy Industry Co Ltd cleared the 10-percent daily limit to 11.15 yuan, whilst China CSSC Holdings Ltd jumped 6.39 percent to 17.99 yuan.

China's Ministry of Finance said it would extend property tax trials beyond Shanghai and Chongqing. Real Estate developers were weighed down by these remarks as sector stocks dropped by an average of 0.65 percent. Shenzhen Changcheng Investment Holding Co Ltd, China Wuyi Co Ltd and Shunfa Hengye Corporation led the decline, shedding 1.54 percent, 1.06 percent and 0.62 percent respectively.