Chinese shares rise on banking, energy sectors

Chinese shares closed higher on Monday, led by strong rallies in the banking and energy sectors.

The benchmark Shanghai Composite Index went up 15.27 points, or 0.74 percent, to finish at 2,085.98. The Shenzhen Component Index gained 15.64 points, or 0.21 percent, to close at 7,416.99.

Combined turnover expanded slightly to 196.75 billion yuan (32.0 billion U.S. dollars) from 195.54 billion yuan on the previous trading day.

A number of Chinese listed banks confirmed that they are qualified for a reduction in the reserve requirement ratio (RRR) announced by the People's Bank of China.

China Minsheng Bank went up 3.09 percent and China Merchants

Bank climbed 1.66 percent. China Industrial Bank and China Everbright Bank both rose 1.58 percent respectively.

The central bank said last week that it would cut RRR by 0.5 percentage points for banks engaged in proportionate lending to agricultural and small firms starting June 16.

The energy sector was strong after Chinese President Xi Jinping called for more efforts to revolutionize the country's energy production and consumption habits last Friday.

Lanzhou Haimo Technologies rose by the daily limit of 10 percent. Tong Oil Tools soared by 9.94 percent and Wintime Energy jumped by 3.36 percent.

A State Council decision to upgrade gas, water, sewerage, telecommunications and other underground pipelines by 2019 boosted stocks of pipeline companies.

Fujian Superpipe jumped by 6.6 percent and Ningxia Qinglong Pipes Industry rose by 5.2 percent.

The ChiNext Index, A NASDAQ-style board for growth enterprises, gained 12.88 points, or 0.93 percent, to end at 1,395.61 points on Monday.