Stocks rise on positive news from two sessions

Chinese mainland stocks kicked off the week on an upbeat note as tech shares jumped after the country said it is going to identify innovation as a key part of the economy’s restructuring.

The blue- chip CSI 300 index rose 0.54 percent to 3,446.48.

The benchmark Shanghai Composite Index added 0.48 percent to 3,233.87 points, while the Shenzhen Component Index climbed 1.20 percent to 10,522.28 points.

A flood of news from the opening of the National People’s Congress ( NPC) meeting over the weekend was interpreted by investors as positive, despite a cut in China’s economic growth target this year to around 6.5 percent.

“Slower growth has already been priced in by the market. But the government’s emphasis on innovation is sending a positive message,” said Wu Kan, head of equity trading at investment firm Shanshan Finance.

He noted that investors also cheered China’s apparent shift toward promoting healthy equity market to finance the corporate sector, in a move away from the troubled debt market.

Outperforming the broader market, China’s tech- heavy ChiNext board jumped 1.79 percent.

In particular, stocks related to Artificial Intelligence soared after the sector was identified by the country as key to upgrading the economy.

Coal stocks also posted robust gains, as China vowed new cuts in steel and coal capacity. China will cut steel capacity by 50 million tons and coal output by more than 150 million tons in 2017.