Gains by financial stocks push mainland markets to record high this year

Stock markets in the Chinese mainland bounced back on Monday to a new re cord high this year backed by gains in financial and resource stocks.

The Shanghai Composite Index rose by 1.74 percent or 38.03 points to 2,223.33 points on Monday.

The Shenzhen Component Index gained by 1.60 percent or 125.93 points to 8,006.91 points.

Combined turnover on the two bourses on Monday was 282.53 billion yuan ($45.70 billion), down from the previous trading day's 317.73 billion yuan.

Financial stocks recovered from the previous trading day's decline on Monday and coal, nonferrous and oil companies outperformed.

The gain on Monday came after Deng Ge, a spokesman for the China Securities Regulatory Commission, on Friday attributed the recent bullish equity market to a stabilizing economy, abundant liquidity and anticipation of reduced financing costs as well as the Shanghai-Hong Kong Stock Connect scheme, which is expected to begin in October.

The brokerage sector was the biggest winner on Monday. CITIC Securities Co jumped by 6.08 percent to 13.61 yuan and Founder Securities went up by 4.67 percent to 6.28 yuan.

Aluminum Corporation of China Ltd nudged up by 5.63 percent to 3.75 yuan on Monday and China Petroleum & Chemical Corp moved up 2.32 percent to 5.29 yuan.

ChiNext, China's NASDAQ-style board for high-tech and start-ups listed in Shenzhen, inched up by 0.29 percent or 3.88 points to 1,329.82 points on Monday.