Chinese shares post strong gains on Mon. despite resumption of IPO

Despite tad lower opening over psychological pressure from the announcement of IPO resumption over the weekend, share prices on China's Shanghai and Shenzhen stock bourses continued to post strong gains on Monday. China will restart initial public offerings (IPO) after suspending them in July in the wake of a stock market rout which began in the middle of June, the securities regulator said last Friday.

Deng Ke, spokesman with the China Securities Regulatory Commission (CSRC), told a press conference that IPOs of 28 companies will be allowed before the end of this year.

For the whole day, the benchmark Shanghai Composite Index surged 1.58 percent to end at 3,646.88 points. The Shenzhen Composite Index soared 1.82 percent to end at 2,191.60 points.

The index for small firms advanced 1.71 percent to end at 8,265.50 and the ChiNext Index jumped 2.38 percent to end at 2,724.62. Combined turnover of the two bourses expanded further to 1.37 trillion yuan from 1.17 trillion yuan on the previous trading day.

All listed sectors except for insurance and securities dealers, which led previous days' rallies, ended in the positive territory, led by internet, banking, computer equipment, software services, mineral products, chemical fiber, petroleum and telecom equipment sectors.

Securities brokers continued to post strong gains at Monday's opening and in the morning session, but retreated in the afternoon. The index tracking the block decreased 0.37 percent on the day.

On the stock index futures market, the IF November contract advanced 0.85 percent to end at 3,775.4, keeping a discount of 64.95 points to the underlying Hushen 300 Index, which increased 1.24 percent to end at 3,840.35.

The SSE 50 November contract went up 1.15 percent to end at 2,507.0, representing a discount of 27.08 points to the underlying SSE 50 Index, which added 1.63 percent to close at 2,534.08.

The CSI November contract rose 1.02 percent to end at 7,353.8, a discount of 190 points to the underlying CSI 500 stock index, which surged 1.30 percent to end at 7,543.8.