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Mainland markets rally as banking reform expectations send financial stocks soaring

2014-07-29 08:12 Global Times Web Editor: Qin Dexing

Stock markets in the Chinese mainland soared on Monday, with shares listed in Shanghai hitting the record level this year.

The Shanghai Composite Index jumped on Monday by 2.41 percent or 51.33 points to 2,177.95 points, the highest level in 2014.

The Shenzhen Component Index rose by 3.04 percent or 230.54 points to 7,808.66 points, a four-month high.

The combined turnover on the two bourses on Monday was 333.79 billion yuan ($53.95 billion), surging from the previous trading day's 220.17 billion yuan.

Shares in banks were the biggest gainers on Monday, rising more than 5 percent on average on the expectations of banking reforms. Bank of Communications surged by the daily limit of 10 percent to 4.22 yuan after Reuters reported on Friday the bank planned to sell stakes to private investors as part of the government's reform plan.

Also, the China Banking Regulatory Commission on Friday approved the establishment of three private banks, including one backed by Internet giant Tencent Holdings.

Brokerages also posted strong gains on Monday after local media reports said the Shanghai-Hong Kong Stock Connect program will commence on October 13.

A spokesperson of the Hong Kong Stock Exchange said the preparation for the scheme is going smoothly and a trial will be launched at the end of August or in September, China Securities Journal reported Monday.

Also, shares in brokerage firms were pushed higher amid companies forecasting strong financial performance in the first half of the year.

ChiNext, China's NASDAQ-style board for high-tech and start-ups listed in Shenzhen, gained by 2.24 percent or 28.76 points to 1,314.53 points at close on Monday.

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