Share prices on China's Shanghai and Shenzhen bourses opened higher and extended strong momentum almost for the whole day on Monday triggered by the central bank's decision to expand a pilot program on credit-asset pledged lending to nine municipalities and provinces.
The People's Bank of China (PBOC), the central bank, announced the decision on Saturday. Analysts interpreted the move as China's quantitative easing (QE) stimulus which is expected to release multiple trillion yuan of credit capital into the economy.
For the whole day, the benchmark Shanghai Composite Index went up 3.28 percent to end at 3,287.66 points. The Shenzhen Composite Index jumped 4.18 percent to end at 1,887.28.
The SME Index for small firms surged 4.13 percent to end at 7,428.18 and the ChiNext Index advanced 4.52 percent to close at 2,316.78. Combined turnover of the two bourses expanded sharply to 925.24 billion yuan from 596.53 billion yuan on the previous trading day.
The majority of stocks closed higher on Monday, led by logistics, internet, shipbuilding, public transport, environmental protection, software, securities brokerage, nonferrous metals, chemical, machinery, petroleum iron and steel and property sectors.
On the stock index futures market, the IF October contract soared 3.63 percent to end at 3,421.0, keeping a discount of 26.69 points to the underlying Hushen 300 Index, which gained 3.22 percent to close at 3,447.69.
The SSE 50 October contract added 3.13 percent to end at 2,276.2, keeping a discount of 7.23 points to the underlying SSE 50 Index, which advanced 2.89 percent to close at 2,283.43.
The CSI October contract jumped 3.91 percent to end at 6,642.6, keeping a discount of 76.12 points to the underlying CSI 500 stock index, which went up 3.84 percent to end at 6,718.72.