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SHANGHAI: China stocks closed up on Monday, as markets played catch-up with last week’s gains in global equities and rebounded from sharp sell-offs seen before the week-long Lunar New Year holiday.

The blue-chip CSI300 index rose 1.5% to 4,634.09, while the Shanghai Composite Index gained 2% to 3,429.58 points.

China’s market liquidity will remain reasonably ample even as seasonal flows of money injected ahead of the Lunar New Year holiday are recouped, the official Shanghai Securities News said on Monday.

The CSI Construction Engineering Index and the infrastructure sub-index jumped 6.2% and 4.6% respectively, after China’s state planner said it would accelerate the construction of new infrastructure.

The National Development and Reform Commission also said more efforts would be made to expand domestic demand, China Daily reported.

Banks added 3.3%, energy shares surged 4.9%, and automobiles rose 2.8%.

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