Stock markets boosted by govt pledge to pursue reform, growth

Markets in the Chinese mainland rose strongly Monday with more than 60 stocks surging by the daily limit.  

The benchmark Shanghai Composite Index added 35.46 points or 1.62 percent to close at 2,229.24 points on Monday, while the Shenzhen Component Index rose to 8,739.52 points, 154.65 points or 1.80 percent higher than Friday.  

Combined turnover on the two bourses on Monday was 235 billion yuan ($38.57 billion), up from Friday's 198.01 billion yuan. 

More than 60 stocks, mainly technology and environment-related companies, rose by the 10 percent daily limit on Monday with Lanzhou Haimo Technologies and Nanjing Cec Environmental Protection Co surging to 17.47 yuan and 26.33 yuan, respectively. 

Stocks in the environment sector were up by almost 4 percent on Monday. 

In addition to the government's allocation of 5 billion yuan to curb air pollution last week, media reports suggested that the gain in environment stocks may also have been partly due to a report last week by the World Health Organization identifying air pollution as a leading cause of lung cancer.

Shanghai Baosight Software Co, which inked a deal Sunday to provide data-center services to Alibaba Group, jumped 10 percent to 33.18 yuan.   

Consumer firms also gained with Shanghai Metersbonwe Fashion & Accessories Co and home appliance maker Qingdao Haier Co both rising by the 10 percent limit to 15.13 yuan and 16.73 yuan, respectively. 

Strong gains in the technology, consumer and environment sectors came as the State Council vowed to further promote reforms and pledged to implement pro-growth measures. 

After a meeting presided over by Premier Li Keqiang on Friday, the State Council said in a statement that an increase in residential income as well as industrial restructuring efforts will boost the country's ability to meet this year's growth target of 7.5 percent. 

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, jumped 51.03 points or 3.78 percent from Friday to close at 1,400.97 points on Monday. Twenty-five out of 355 companies in the index reached the daily upward limit.