Chinese stocks, led by small-cap firms, surged for a third consecutive session on Monday.
The benchmark Shanghai Composite index added 2.41% to 3,971, taking its three-day gain to 13.1%. Over the past 12 months the index has rallied 94%.
It now sits 13.3% below 4,500 points – cited by some as the desired level the government wishes to see before extraordinary measures designed to support the market will be relaxed or removed by regulators.
While the broader index rallied hard, as opposed to the price action seen on Thursday and Friday last week, large-cap stocks were under pressure with the SSE 50 index, the 50-largest firms listed in Shanghai, slipping 0.99%.
The gains seen in Shanghai were reflected, and in many instances amplified, across other Chinese markets.
The CSI 300 and 500 indices, comprising the 300 and 500 largest listed firms in Shanghai and Shenzhen, rose by 2.56% and 6.22% respectively. Elsewhere the Shenzhen Composite and ChiNext indices, with a larger weighting of new-age high-tech firms, jumped 4.18% and 5.8% apiece.
Having fallen by 43% between June 5 to July 8, ChiNext has now rallied 16.41% in just three trading sessions, taking its losses from its record peak of 4,308 on June 5 to 33.55%. Over the past year, however, the index has risen by 97.1%.
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