China's shares closed up 0.09 percent on Monday as investors bought heavily into companies based in Tianjin after the northern Chinese city pledged to build a model city in China's drive for sustained economic growth.
The benchmark Shanghai composite index finished at 1,295.915 points, reversing a 0.56 percent loss at midday led by Sinopec Corp, which was hit by profit-taking after a recent rally.
The Tianjin municipal government said late last week it would improve the city's environment and infrastructure to help ensure sustained economic growth in response to a central government call to focus on the quality of the economy.
Tianjin companies dominated Monday's biggest gainers list.
Among them, trade counter Tianjin Quanye Bazaar (Group) Co Ltd jumped its 10 percent daily limit to close at 3.63 yuan and Tianjin Global Magnetic Card Co Ltd rose 6.88 percent to 3.42 yuan.
The index has now gained 17 percent since December 1, buoyed by strong technical buying after a four-year market slump, but analysts said the index should move narrowly from 1,200 to 1,300 points in the near term because investors would be cautious amid the corporate reporting season that ends on April 30.
Top Asian refiner Sinopec bucked the day's uptrend to close down 2.08 percent at 5.19 yuan.
The stock had jumped 11 percent over the past two weeks on market talk that Beijing would soon raise the prices of oil products, seen as a move to boost Sinopec's bottom line.
On Sunday, the National Development and Reform Commission said Beijing would raise ex-refinery gasoline prices by 300 yuan per tonne and diesel by 200 yuan per tonne, effective immediately.
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