SHANGHAI: Mainland China and Hong Kong shares finished higher on Monday, on the back of gold and non-ferrous metal stocks, with equity investors continuing to digest Beijing’s latest measures to rescue its beleaguered property sector that has been a key drag on the world’s second-largest economy.

Beijing announced “historic” steps on Friday to stabilise its crisis-hit property sector, with the central bank facilitating in extra funding and easing mortgage rules, and local governments set to buy some apartments.

Property shares gave up earlier intraday gains, with the CSI real estate sub-index closing 1.23% lower.

“We believe Beijing is headed in the right direction with regard to ending the epic housing crisis,” said Ting Lu, chief China economist at Nomura. “This is proving to be a daunting task and we think markets need to exercise more patience when awaiting more draconian measures.”

At the close, the Shanghai Composite index was up 0.54% at 3,171.15 points, the highest close since Sept. 2023. The blue-chip CSI300 index was up 0.35% at 3,690.96 points, the loftiest close since Oct. 2023.

The smaller Shenzhen index ended 0.47% higher and the start-up board ChiNext Composite index was higher by 0.589%.

At the close of trade, the Hang Seng index was up 82.61 points, or 0.42%, at 19,636.22 points, the highest closing level since Aug. 2023. The Hang Seng China Enterprises index rose 0.44% to 6,964.99.

Gold stocks outperformed the markets as investors snapped up shares tied to the high-flying precious metal. Zijing Mining Group Co Ltd,, Shandong Gold Mining Co Ltd , and Zhongjin Gold Corp Ltd all rose more than 3% each at the close. CSI non-ferrous metal sub-index gained 3.82%.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.3%, and Japan’s Nikkei index closed 0.73% higher.

The yuan was quoted at 7.2314 per US dollar at 0811 GMT, 0.08% weaker than the previous close of 7.2254.