China's shares edged up 0.5 percent on Monday, led by large-caps such as Wuhan Steel and Qilu Petrochemical, after moves to prop up depressed bourses emerged over the weekend. The benchmark Shanghai composite index finished at 1,293.739 points. It is now up 9 percent from a six-year trough hit on February 1, but below the psychologically crucial 1,300 level. In an initial step that could spark an inflow of some of the country's $1.5 trillion in savings into markets, China gave the green light for two mid-sized brokerages to manage individuals' assets for the first time, state media reported on Monday.
That followed comments made by central bank governor Zhou Xiaochuan during an annual parliament meeting on Saturday that fund management companies set up by commercial banks would be allowed to invest directly in stocks and debt.
"Many proposals have emerged from the parliamentary session to boost the market, but it takes time for actual policies to be implemented," said analyst Luo Yanxin at Guohai Securities. "So many investors kept on the sidelines today, capping gains."
Still, large-capitalised stocks rallied on Monday.
China's third-largest steel maker, Wuhan Iron & Steel Co Ltd, climbed 1.8 percent to 4.44 yuan.
Another large-cap, Sinopec Qilu Petrochemical Co Ltd, jumped 3.7 percent to 7.55 yuan.
Among some of the policies to be reviewed during the parliament meeting are amendments to the country's securities law aimed at protecting the rights of small investors.
China's main index had shown signs of recovering in 2005 as Beijing initiated market-friendly policies, after markets fell 15 percent in 2004 to become Asia's worst performer that year, hit by economic-cooling steps and corporate scandals.
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