Reform expectations boost stocks

Stock markets in the Chinese mainland rose on Monday, amid expectations of reforms that could offset the impact of data showing weak factory activity in February.

The benchmark Shanghai Composite Index was up for a fourth day, gaining by 18.93 points or 0.92 percent to 2,075.24 points on Monday. The Shenzhen Component Index inched up by 25.98 points or 0.35 percent to 7,391.91 points.

Combined turnover on the two bourses on Monday was 241.51 billion yuan ($37.54 billion), up from Friday's 230.71 billion yuan.

The gain on Monday came despite weaker factory activity in China in February. HSBC/Markit's Purchasing Managers' Index (PMI) for February fell to a seven-month low of 48.5, down from 49.5 in January. A number below 50 indicates contraction.

Offsetting the impact of weak PMI data, investors turned their eyes to the annual two sessions - the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference - which began on Monday.

Stocks linked to reform of State-owned enterprises and environmental protection, which are expected to be among the main topics being discussed during the two sessions, gained strongly.

Oil companies, which have been driving reform expectations recently and saw a strong gain last week, also climbed again on Monday.

Shanghai Petroleum & Chemical rose by 9.89 percent to 4.11 yuan and Shanghai Lonyer Fuels Co surged by 10 percent to 13.30 yuan.

The environmental protection sector rose by 6.20 percent on Monday.

Kelin Environmental Protection Equipment Inc and Fujian Longking Co soared by 10 percent to 28.91 yuan and 34.41 yuan, respectively.

Recently listed companies also rose on Monday, with 16 stocks jumping by the daily limit of 10 percent.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, also gained on Monday, rising by 30.25 points or 2.11 percent to 1,465.14 points.