BEIJING: China stocks jumped nearly 2 percent to near seven-year-highs after Beijing unveiled details of an ambitious plan to construct a modern Silk Road to improve links from Asia to Europe and Africa.
Shares were also supported by weekend comments from central bank governor Zhou Xiaochuan that reinforced expectations for further monetary easing to support the slowing economy.
The CSI300 index rose 1.7 percent, to 4,039.30 points at the end of the morning session, while the Shanghai Composite Index gained 1.6 percent, to 3,750.92 points.
In Hong Kong, the Hang Seng index added 1.5 percent, to 24,853.37 points.
The Hong Kong China Enterprises Index, which tracks Chinese companies listed in Hong Kong in the form of so-called “H shares”, jumped 3.4 percent, after China’s securities regulator said on Friday it would let mainland mutual funds invest in Hong Kong shares via the Shanghai-Hong Kong Stock Connect.
Investor enthusiasm also got a boost from a commentary in Monday’s People’s Daily saying China’s bull market would benefit from economic restructuring. The article from the Communist Party’s mouthpiece added to signs that policymakers support THE STOCK MARKET’S rise.
