China stocks close up Monday despite RRR hike
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Chinese shares closed higher Monday, despite last week's announcement by the central bank that it would further hike the reserve requirement ratio (RRR) for commercial banks on Thursday.
The benchmark Shanghai Composite Index closed up 32.45 points, or 1.12 percent, to end at 2,932.25.
The Shenzhen Component Index rose 2.06 percent, or 259.35 points, to finish at 12,872.47 points.
Combined turnover rose to 266.4 billion yuan (40.54 billion U.S. dollars) from 258.7 billion yuan the previous trading day.
Losers outnumbered gainers 808 to 73 in Shanghai and 1,091 to 83 in Shenzhen.
The People's Bank of China (PBOC), the central bank, announced Friday that it would increase the bank reserve requirement ratio by 50 basis points on Feb. 24.
The hike, the second this year and the eighth since the beginning of last year, is the latest move to soak up liquidity and control inflation.
Travel stocks gained momentum as Chinese Vice Premier Wang Qishan on Sunday called for sound and fast development of the nation's tourism industry.
China International Travel Service Co. Ltd. (CITS), the country's largest travel agency, jumped 7.61 percent from the previous trading day to close at 29.57 yuan per share.
The new energy sector did well on the back of higher prices for polysilicon products.
New energy stocks rose across the board, with Dunan Environment, a Zhejiang-based environmental equipment provider, rising by the daily limit of 10 percent to close at 27.39 yuan per share from the previous trading day.
The oil sector posted a strong performance as China raised the prices of gasoline and diesel by 350 yuan per tonne beginning Sunday.
PetroChina Co. Ltd., China's largest oil producer, rose 1.12 percent to 11.71 yuan from the previous trading day while Sinopec, the country's largest oil refiner, climbed 1.42 percent to 9.27 yuan.
