China: Small-caps lead indexes higher after regulator's assurances

[SHANGHAI] China stocks rose sharply on Monday, led by small-caps, with investors encouraged by a regulator's assurance it was premature to consider withdrawing government bailout funds, and comments dispelling fears of a flood of initial public offerings.

The blue-chip CSI300 index rose 1.6 per cent, to 3,065.69, while the Shanghai Composite Index gained 1.8 per cent, to 2,859.50 points.

Top securities regulator Liu Shiyu told reporters on Saturday that China's shift toward a registration system for initial public offerings (IPOs) would "take a relatively long time", and "it's too early to talk about" the exit of government bailout funds from the market.

Stocks rose across the board, with China's start-up board ChiNext leading the charge, up 4.7 per cent.

REUTERS