Mainland markets extend gains as CPI eases concerns

Stock markets in the Chinese mainland saw a strong gain on Monday as steady inflation data relieved investors' concerns over the country's economy.

The Shanghai Composite Index jumped by 1.38 percent or 30.23 points to 2,224.65 points on Monday. The Shenzhen Component Index surged by 1.58 percent or 124.41 points to 8,009.74 points.

Combined turnover on the two bourses on Monday was 279.82 billion yuan ($45.46 billion), up from the previous trading day's 243.65 billion yuan.

Gains in the financial, auto and real estate sectors supported the upward trend that began on Friday.

China's consumer price inflation in July remained steady at 2.3 percent from a year earlier, according to the National Bureau of Statistics. Analysts said the July reading is a relief to investors.

Financial stocks, especially brokerage firms and insurers, supported the market with a gain of 2.04 percent and 1.87 percent, respectively.

Changjiang Securities Co rose by 2.54 percent to 6.06 yuan and CITIC Securities Co gained by 2.30 percent to 13.36 yuan on Monday.

Real estate companies recovered from the last week's sluggish performance, rising by 1.73 percent on Monday.

Two companies engaged in real estate business, Zhe-jiang Guangsha Co and China Sports Industry Group Co, soared by the daily limit of 10 percent on Monday.

Companies related to railway construction also gained strongly on Monday after the government announced on the same day that the country will allow railway firms to generate more income from land development and from building new transport hubs.

Nanjing Kangni Mechanical & Electrical Co jumped by the daily limit of 10 percent to 17.57 yuan and Jinxi Axle Co advanced 5.83 percent to 11.26 yuan on Monday.

ChiNext, China's NASDAQ-style board for high-tech and start-ups listed in Shenzhen, continued to rise on Monday, up by 1.48 percent or 20.34 points to 1,397.78 points after a 3.88 perecnt gain last week.