China stocks close higher on Monday

BEIJING - Chinese shares closed higher on Monday, the second trading day after the week-long Spring Festival holiday, as the central bank's reassurance on liquidity boosted market confidence.

The benchmark Shanghai Composite Index gained 2.03 percent, or 41.57 points, to finish at 2,086.07. The Shenzhen Component Index climbed 2.57 percent, or 195.59 points, to close at 7,812.16.

Combined turnover on the Shanghai and Shenzhen stock exchanges increased sharply to 290.17 billion yuan ($47.5 billion) from 181.78 billion yuan the previous trading day.

The People's Bank of China said on Saturday that it will apply monetary policy instruments in the coming months to keep liquidity at an appropriate level and achieve reasonable growth in credit and social financing.

The central bank will also strengthen communication with the market and the public to stabilize expectations and ensure stable performance of the interest rate.

Analysts said the upcoming second session of the 12th National People's Congress and the second annual session of the 12th Chinese People's Political Consultative Conference also boosted investors' market sentiments.

Automobile, furniture and electrical appliances sectors led Monday's rises. Changzhou Xingyu Automotive Lighting Systems Co Ltd, Dalian Kemian Wood Industry Co Ltd and Beijing Dynamic Power Co Ltd all rose by the daily limit of 10 percent.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.35 percent, or 20.73 points, to end at 1,553.41 points on Monday.