Release of new urbanization plan boosts stock exchanges

Stock markets in the Chinese mainland began the week on a positive note Monday, backed by gains in urbanization-related stocks.

The benchmark Shanghai Composite Index closed up on Monday by 19.33 points or 0.96 percent at 2,023.67 points. The Shenzhen Component Index also gained by 101.56 points or 1.40 percent to 7,340.62 points.

Combined turnover on the two bourses on Monday was 174.75 billion yuan ($28.32 billion), up from Friday's 161.18 billion yuan.

Monday's rally came after China on Sunday unveiled an urbanization plan for the 2014-20 period. The plan, released by the Central Committee of the Communist Party of China and the State Council, called for investment in infrastructure and transportation networks, with the aim of raising the proportion of urban residents to 60 percent by 2020, up from the current 53.7 percent.

Shares linked to construction, property and automakers gained strongly on Monday.

Shanghai Zhezhong Construction Co and Henan Tongli Cement Co jumped by the daily limit of 10 percent to 16.95 yuan and 6.19 yuan, respectively.

Leading real estate developers China Vanke Co and Poly Real Estate Group Co gained by 3.05 percent and 1.43 percent, respectively.

Shares in China CITIC Bank Corp continued to fall Monday, after its plan to launch virtual credit cards with Tencent Holdings and Alipay, the online payment unit of Alibaba Group, was blocked by the People's Bank of China, the central bank.

CITIC dropped by 6.75 percent to 4.56 yuan, while the overall banking sector rose by 0.05 percent on Monday.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, saw a strong gain of 43.39 points or 3.03 percent to 1,477.41 points.

The gain was led by sectors such as electric cars, medical equipment, cloud computing, mobile games and media. Thirteen stocks on the board jumped by the daily limit of 10 percent.