Stock markets in Shanghai and Shenzhen notched modest gains Monday after the provincial government of Sichuan unveiled a multi-trillion yuan round of development projects.
The Shanghai Composite Index tacked on 6.50 points, or 0.32 percent, to close at 2,033.19; while the Shenzhen Component Index crept up 1.33 percent, or 109.41 points, to end at 8,310.94.
Both markets opened lower Monday, and stayed south of even for most of morning trading despite early gains in the military, publishing and gas heating sectors. The indices got a major hoist near the afternoon on gains in cement, machinery and construction stocks after the local government of Sichuan Province introduced a raft of 2,242 projects covering fields including urban infrastructure, energy resources, agriculture and environmental protection. The projects are expected to be worth a total of 3.67 trillion yuan ($580 billion), according to a report published Monday on stcn.com, the website of the Securities Times.
Shares of civil engineering and construction related companies based in Sichuan enjoyed sharp rises following the local government's announcement. Chengdu Xinzhu Road & Bridge Machinery Co surged by the daily limit to 10.44 yuan. China Railway Erju Co climbed 7.64 percent to 6.34 yuan. Sichuan Road & Bridge Co edged up 5.47 percent to 5.40 yuan.
Cement producers also largely outperformed Monday. Anhui Conch Cement Co went up 3.74 percent to 15.27 yuan, while Shaanxi Qinling Cement (Group) Co surged by the daily limit to 3.71 yuan.
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