China stocks staged their biggest gains in more than two years on Monday, extending a rally that has seen them rise nearly 7 per cent in the previous two trading days.
The Shanghai Composite Index suegedn 4.1 per cent to close at 2,654 on Monday, its biggest advance since March 2, 2016.
The Shenzhen Component Index jumped 4.9 per cent, while the Nasdaq-style ChiNext index soared 5.2 per cent.
Total trading volume of the two stock exchanges in Shanghai and Shenzhen hit the highest in about three months.
Brokerages were the best performers, with all 33 listed securities companies in Shanghai and Shenzhen surging by the 10 per cent daily limit. That took the sub-index for the sector 10 per cent higher, limiting up for the 9th time on record.
The strong performance of the sector comes after Chinese authorities and major marke players over the weekend rushed to take several measures to resolve the risks of forced selling of pledged shares, which has been viewed as a major drag on securites companies’a valuation.