Chinese shares up on capital market guidelines

Chinese shares surged Monday after China's cabinet, the State Council, unveiled guidelines for regulating the capital market in coming years. The benchmark Shanghai Composite Index went up 2.08 percent, or 41.74 points, to finish at 2,052.87, while the Shenzhen Component Index gained 2.17 percent, or 155.7 points, to close at 7,318.14. Combined turnover stood at 176.1 billion yuan (28.58 billion U.S. dollars). The State Council issued on Friday guidelines that set out a multi-tier capital market by 2020 with proper structure, functions and regulations, high efficiency and inclusiveness. The two bourses saw 192 shares up by over 5 percent and only three shares hitting the daily decline limit of 10 percent. The coal sector rose 8 percent with 23 shares up by the limit of 10 percent, leading the increases while the stocks of nonferrous metals, steel, brokerage firms and insurance also performed strong on the trading day. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, surged 19.7 points, or 1.57 percent, to close at 1,278.28 points on Monday.