Chinese shares surge after govt reassurance

Chinese shares closed higher on Monday after a National Bureau of Statistics (NBS) spokesman said the economy showed obvious stabilizing signs and that China will realize this year's growth target.

The benchmark Shanghai Composite Index surged 1.90 percent, or 39.02 points, to end at 2,096.47. The Shenzhen Component Index jumped 2.06 percent, or 168.29 points, to finish at 8,334.57.

Combined turnover on the two bourses, however, shrank slightly to 214.28 billion yuan (34.74 billion U.S. dollars) from 220.8 billion yuan the previous trading day.

NBS spokesman Sheng Laiyun told a press conference on Monday that the Chinese economy has demonstrated "positive changes and more obvious signs of stabilization," citing a better external demand and confidence of domestic companies.

Sheng said China can realize its annual growth target of 7.5 percent.

Buoyed by upbeat market sentiment, most sectors on the two bourses posted gains, led by the ceramic industry, the financial sector and exporters. A total of 42 stocks jumped by the daily cap of 10 percent.

Stock brokerages rallied as the Shanghai Stock Exchange said on Sunday that it would study on the introduction of a T+0 scheme that enables individual investors to sell their shares the same day they buy them to better protect the interests of medium and small investors.

Following the news, Shanghai-based Haitong Securities Company Limited soared 8.10 percent to 11.35 yuan per share. Southwest Securities Co., Ltd., a brokerage headquartered in Chongqing, rose 7.24 percent.

Shanghai-based companies closely related to foreign trade also recorded strong performances since the Ministry of Commerce announced on Thursday that the State Council had approved the establishment of a pilot free trade zone in Shanghai.

Sinotex Investment & Development Co., Ltd., a Shanghai company mainly engaged in the textile industry, and CTS International Logistics Corporation Limited, both ended 10 percent higher.

The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, continued a rising streak for six days straight by gaining 1.50 percent to close at 1,238.17.