Chinese shares up after interest cut

Chinese shares closed higher on Monday, the first trading day since the central bank's announcement of an interest rates cut.

The benchmark Shanghai Composite Index increased 3.04 percent, or 127.67 points, to finish at 4,333.58 points.

The Shenzhen Component Index gained 3.2 percent, or 463.63 points, to close at 14,944.88 points.

Combined turnover on the two bourses amounted to 1.41 trillion yuan (230.39 billion US dollars), up from 1.1 trillion yuan the previous trading day.

Shares of 280 listed firms soared by the 10-percent daily limit.

Sectors related to the Internet and property investment led the rise. Huayuan Property Co. Ltd. jumped 10 percent to close at 7.1 yuan per share, while Leshi Internet Information & Technology Corp. surged 10 percent to finish at 162.75 yuan.

China's central bank, the People's Bank of China (PBOC), on Sunday announced the third cut to interest rates since November, in a move aimed at bolstering the real economy. The cut entered effect on Monday.

The PBOC has cut the benchmark deposit and loan interest rates by 25 basis points. The one-year deposit rate now stands at 2.25 percent, and the one-year lending rate at 5.1 percent.

Analysts said that the cut was in line with market expectations of pro-growth monetary measures after a string of indicators, including manufacturing activity and foreign trade, suggested the world's second-largest economy was facing a rocky ride on its reform drive.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, soared 5.83 percent, or 173.23 points, to end at a record3,146.83 points.