Chinese shares pick up over stock option launch

Chinese stocks closed higher on Monday after the launch of the country's first stock option.

The benchmark Shanghai Composite Index rose 0.62 percent to end at 3,095.12 points, while the Shenzhen Component Index gained 0.71 percent to end at 10,868.14 points.

Total turnover on the two bourses shrank to 436.14 billion yuan (71.17 billion U.S. dollars), the lowest within three months.

China's first stock option, the 50 ETF, was launched on the Shanghai Stocks Exchange on Monday, marking the introduction of a new risk-management tool to the country's growing financial derivatives.

Analyst with CITIC Securities, Chen Dongwei, said the move had given steam to banking, insurance and securities traders. Western Securities Co. Ltd. increased 10.02 percent to close at 32.07 yuan per share, while China Minsheng Banking Corp. Ltd. rose 1.87 percent to end at 9.24 yuan.

Meanwhile, stocks related to liquor, food and beverages also gained with the week-long Chinese New Year celebration just around the corner.

The sports-related sector was among the day's biggest losers. Guirenniao Co. Ltd., a Chinese sports attire producer, lost 10 percent to end at 22.32.

Chen advised caution in future trading, citing factors such as the upcoming Spring Festival holiday, when liquidity will likely be tight, and a new batch of initial public offerings (IPOs) this week.

The ChiNext Index, China's Nasdaq-style board of growth enterprises, lost 1.28 percent to end at 1,708.85 points.