Stock markets rise for second day

Stock markets on the Chinese mainland continued to rise for a second day after the weeklong Spring Festival holidays with robust trading on Monday backed by a series of policy announcements.

The benchmark Shanghai Composite Index gained 41.57 points or 2.03 percent to 2,086.07 points on Monday. The Shenzhen Component Index jumped 195.59 points or 2.57 percent to 7,812.16 points.

Combined turnover on the two bourses on Monday was 290.1 billion yuan ($47.86 billion). soaring from the previous trading day's 181.78 billion yuan.

Monday's rally came after the People's Bank of China, the central bank, pledged over the weekend to continue a stable monetary policy this year and urged commercial banks to better manage their liquidity and asset liabilities.

Also, the Ministry of Finance said on Saturday that a subsidy program for new energy vehicles will be extended beyond 2015 when the existing policy expires, boosting shares in carmakers.

Warren Buffet-backed automaker BYD Co soared by the daily limit of 10 percent to 43.45 yuan on Monday while Anhui Jianghuai Automobile Co jumped 10 percent to 8.36 yuan.

Stocks linked to US-based electric car maker Tesla Motors Inc, which began selling cars in China this month, also gained strongly. Kingray New Materials Science and Technology and China Baoan Group jumped by the daily limit of 10 percent to 12.42 yuan and 10.53 yuan, respectively.

Lottery-related stocks have performed strongly recently as investors expect the country's lottery market, especially the Internet lottery market, to expand. China's lottery market grew 23.88 percent every year in the last five years while the Internet lottery market grew 51 percent every year in the same period, according to a research note by Shenyin & Wanguo Securities.

China Wafer Level CSP debuted in Shanghai with stocks soaring 44 percent, the daily limit for new stock, from its IPO price on Monday.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, rose 20.73 points or 1.35 percent from the previous trading day to 1,553.41 points, a record high.