China stocks rally on urbanization plan

Chinese shares rallied on Monday on urbanization expectations.

The benchmark Shanghai Composite Index rose 0.97 percent, or 19.33 points, to close at 2,023.67. The Shenzhen Component Index gained 1.40 percent, or 101.56 points, to close at 7,340.62.

Combined turnover on the two bourses grew to 174.75 billion yuan (28.5 billion U.S. dollars) from 161.18 billion yuan the previous trading day.

A plan to steer urbanization along a human-centered, environmentally friendly path from 2014 until 2020 was unveiled on Sunday.

"Domestic demand is the fundamental impetus for China's development, and the greatest potential for expanding domestic demand lies in urbanization," according to the national urbanization plan (2014-2020).

The ceramics industry was the biggest winner on Monday as urbanization boosts home renovation. Zhejiang Kaier New Materials Co., Ltd. jumped 7.55 percent to end at 32.48 yuan per share. The Guangdong-based Great Wall Group Co., Ltd. climbed 2.21 percent to 12.96 yuan.

Car makers also pocketed handsome gains as new energy vehicles have been marshaled retrospectively into a government work plan for the battle against pollution in 2014.

Anhui Jianghuai Automobile Co., Ltd. rose by the daily limit of 10 percent to 9.99 yuan. Zhengzhou Yutong Bus. Co., Ltd. grew 2.38 percent to 16.8 yuan.

China CITIC Bank dived 6.75 percent on Monday following a 8.26 percent slump on Friday. The bank announced on March 11 that it would partner with Internet firms Tencent and Alipay in issuing online credit cards based on code scanning payments. However, the People's Bank of China, the central bank, suspended online credit cards and payments via code scanning over security concerns.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, surged 3.03 percent, or 43.39 points, to end at 1,477.41 points on Monday.