Mainland exchanges boosted by PBOC decision to lower interest rates

Stock exchanges in the Chinese mainland saw gains amid robust trading volume on Monday, following the central bank's surprise rate cut over the weekend.

The benchmark Shanghai Composite Index surged to a three-year high on Monday, closing up by 46.09 points or 1.85 percent at 2,532.88 points.

The Shenzhen Component Index jumped by 245.61 points or 2.95 percent to 8,577.91 points, its highest level in 12 months.

Combined turnover on the two bourses on Monday was 584.41 billion yuan ($95.23 billion), surging upward from the previous trading day's 370.21 billion yuan.

Investors were cheered by the rate cut decision late on Friday by the People's Bank of China (PBOC), the central bank.

The PBC cut the one-year benchmark lending rate by 40 basis points to 5.6 percent and the one-year benchmark deposit rate by 25 basis points to 2.75 percent.

Analysts see the rate cuts as an effort to boost the slowing economy and said it would help to lower financing costs for businesses.

Brokerage firms saw another big gain of 6.0 percent on average on Monday, following an increase of 6.5 percent in the previous trading session.

China Merchants Securities Co and Founder Securities Co jumped by the daily limit of 10 percent to 16.34 yuan and 8.13 yuan, respectively.

Media firms had risen by more than 4 percent in the previous trading session, but became the only sector that declined on Monday. Zhejiang Daily Media Group Co fell by 1.85 percent to 18.08 yuan.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups, inched up by 2.98 points or 0.20 percent to 1,507.81 points on Monday.