Chinese share prices rose sharply on Monday with increased turnover, shrugging off an interest rate hike announced by the government last week to cool the economy.
The benchmark Shanghai Composite Index, which covers both A and B shares listed on the Shanghai Stock Exchange, jumped 3.81 percent, or 154.51 points, to 4,213.36 points.
The Shenzhen Component Index on the country's smaller Shenzhen Stock Exchange gained 5.38 percent, or 721.3 points, to 14,139.27 points.
The Hushen 300 Index reflecting the performance of China's two stock exchanges closed at 4,156.72 points, up 4.65 percent from the previous close.
Two measures aiming at mopping up liquidity were announced after the market closed on Friday. The People's Bank of China said it was raising benchmark one-year lending and deposit rates by 0.27 percentage points.
The government also announced a reduction in the withholding tax on interest income from 20 to five percent.
The combined turnover of the two bourses rose to 235.23 billion yuan (31.1 billion U.S. dollars), from 161.1 billion yuan on Friday and 96.9 billion yuan on Thursday. Analysts said investor confidence had largely recovered as the long-anticipated negative policies had finally come out.
Source: Xinhua
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