Chinese shares posted a solid rally on Monday after the industry watchdog tightened policies on private share placements to curb short-term profit-taking. Combined turnover shrank slightly to about 498.8 billion yuan (about 72.6 billion U.S. dollars) on Monday from 499.3 billion yuan the previous trading day.
The China Securities Regulatory Commission (CSRC) Friday released new policies to tighten its grip on approvals of private share placements by listed companies in terms of deal prices and scales to contain excessive refinancing.
The CSRC criticized certain listed companies for deviating from their main businesses, being engaged in excessive refinancing and investing in unrelated industries.
"The improvement of the new rules will foster the growth of those listed companies with abundant cash flow and great growth potential and restrain market speculations," said Chen Guo, a senior analyst with Essence Securities.
Retail, liquor, construction and other heavyweights led Monday's rally. Bailian Group surged Monday by the daily limit to 17.82 yuan per share, as the Shanghai-based retail conglomerate on Monday announced a strategic alliance with China's e-commerce giant Alibaba.
Kweichow Moutai rose 3.06 percent to 361.29 yuan apiece, while Wuliangye Yibin, another famous Chinese liquor maker, gained 6.29 percent to 41.4 yuan per share.
Xinjiang Beixin Road and Bridge Group surged 6.03 percent to 14.07 yuan apiece.
China's top economic planner approved 18 large fixed asset investment projects with investment totalling 153.9 billion yuan last month, amid efforts to stabilize economic growth by boosting infrastructure investment.
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