Chinese shares close up despite higher interest rates and reserve ratios of banks

Chinese stocks rose on Monday a new high after the recent action of the central bank to reduce liquidity and reduce the bubble in the capital market.

The Composite Index of Shanghai Stock Exchange rose 1.04% (42 points) for reaches 4 072, 23 points at closing. The turnover reached 211.354 billion yuan (22.4 billion dollars).

The blended index of the Shenzhen Stock Exchange rose 169.10 points (+1.4%) to close at 12 269.20 points, with a turnover of 106.146 billion yuan (13.8 billion dollars).

companies and coal industries were the top aviation scholarships.

The Datong Coal Industry Company based in Shanxi has reached its daily limit of 10%, reaches to 23.1 yuan, while Aerospace Hi-Tech Holding Group based in Beijing has increased by 9, 97% to 15 , 88 yuan.

Shares of telecommunications companies, building materials and recycling also have good results.

However, bank stocks fell Monday following the announcement of increased interest rates and reserve ratios.

The Industrial and Commercial Bank of China fell to 0, 73% to fall to 5.45 yuan and Bank of China of 1.03% to close at 5.75 yuan.

The People’s Bank of China, central bank, announced last Friday the rate increase benchmark interest rates and bank reserve requirements.

The central bank wants to slow down excessive investment and reduce the speculative bubble on the stock market, but the effectiveness of this measure remains to be verified, according to a financial expert from the Academy of Social Sciences of China.