Shares edge up on appointment of new securities regulator

Investors check stock prices at a securities brokerage in Huaibei, Anhui province, Feb 22, 2016. [Photo/IC]

Stocks edged up on Monday, extending last week's gains, as the country's securities watchdog appointed a new chairman over the weekend.

The benchmark Shanghai Composite Index closed at 2,927.18, up 2.4 percent, paring the year-to-date loss to 17.3 percent, while the Shenzhen Component Index climbed 2.1 percent to 10,370.99 on Monday.

The rally comes as Liu Shiyu, a veteran banker, was appointed to replace Xiao Gang as the head of China Securities Regulatory Commission (CSRC), according to decisions made by the Communist Party of China Central Committee and the State Council.

Liu Shiyu faces a daunting task in making the A-share market more market-oriented and in cracking down on illegal activities, said analysts.

Prior to the appointment, Liu was the deputy governor of the central bank from 2006 before he left in late 2014 to head the Agricultural Bank of China, the country's third-largest commercial lender by assets.

Insurers and brokerages led the gains on Monday. China Life Insurance and Orient Securities jumped by the daily limit of 10 percent. West Securities, Guoyuan Securities and New China Life Insurance surged more than 5 percent.

Only 93 of the 2,440 stocks edged down on Monday. A total of 602.1 billion yuan of shares changed hands at the two markets.

The CSI 300 Index advanced 2.2 percent to 3,118.87 as of closing.

Cai Xiao and Li Xiang contributed to this story.