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China: Stocks rise; surge in banks offset brokerage losses
[SHANGHAI] China's main stock indexes recouped early losses and posted their biggest daily gains in more than a week on Monday, as a surge in banking stocks offset losses in brokerages.
China's securities regulator said on Friday it is considering issuing brokerages licenses to banks, potentially creating a new revenue stream for lenders and intensify competition in the brokerage industry.
Investment bank China International Capital Corp (CICC) said in a report on Monday that Bank of Communications (BoComm) and Industrial Bank Co Ltd will likely become the first lenders to be awarded brokerage licenses in China.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 1.7 per cent, while the Shanghai Composite Index jumped 1.9 percent.
Shenzhen's ChiNext, the Nasdaq-style board for high-growth start-ups, extended recent gains, rising 2 per cent.
Investors appear to have shrugged off worries over tighter liquidity as 23 companies are poised to sell shares publicly this week, potentially locking up over 3 trillion yuan (US$478.84 billion) of capital.
Among the most active stocks in Shanghai were Bank of China , up 5.2 per cent to 4.03 yuan; Agricultural Bank of China, up 4.4 percent to 3.29 yuan and Industrial Bank, up 8.7 per cent to 14.70 yuan.
In Shenzhen, TCL Corp, up 1.4 per cent to 5.17 yuan; BOE Technology, up 0.3 per cent to 3.16 yuan and Dongxu Optoelec, down 3.6 per cent to 10.58 yuan were among the most actively traded.
Total volume of A shares traded in Shanghai was 32.1 billion shares, while Shenzhen volume was 18.5 billion shares.