Chinese stock markets up despite poor house price data

Stock markets on the Chinese mainland rose to the year's record high on Monday despite government data on new house prices indicating weak demand in the property market.

The Shanghai Composite Index moved up by 0.57 percent or 12.73 points to 2,239.47 points on Monday. The Shenzhen Component Index rose by 0.80 percent or 63.79 points to 8,045.86 points. Both indexes reached their highest level this year.

Combined turnover on the two bourses on Monday was 325.07 billion yuan ($52.85 billion), increasing from the previous trading day's 287.90 billion yuan.

Media stocks performed well on Monday, with four companies soaring by the daily limit of 10 percent. Zhejiang Daily Media Group Co and Guangdong Guangzhou Daily Media Co jumped by 10 percent to 15.14 yuan and 19.04 yuan, respectively.

Medical equipment-related companies also had a good day. Shinva Medical Instrument Co gained by 4.96 percent to 35.55 yuan on Monday.

This upward movement came despite data on the country's new house prices indicating that the downward trend in the property market is continuing.

New house prices declined in 64 of the 70 analyzed cities in July, up from 55 cities in June, according to the National Bureau of Statistics on Monday.

The property sector rose by 0.76 percent on Monday although the country's two largest developers by sales, China Vanke Co and Poly Real Estate Group Co, fell by 0.21 percent and 0.69 percent, respectively.

Meanwhile, insurers' stock prices fell from the previous trading day's gain. China Pacific Insurance (Group) Co declined by 0.49 percent to 20.40 yuan. The insurancy sector dipped 0.31 percent.

ChiNext, China's NASDAQ-style board for high-tech and start-ups listed in Shenzhen, surged by 2.61 percent or 36.29 points to 1,428.74 points.