China stocks ended higher on Monday, aided by a rebound in consumer and real estate shares. However, gains were capped as worries over credit risks persisted and as investors watched the development of China-US trade talks.
The blue-chip CSI300 index rose 1.0 percent to 3,807.58, while the Shanghai Composite Index rose 0.5 percent to 3,091.19.
China's debt crackdown is a key risk to the country's economic growth and will have significant knock-on effects for the global economy, particularly emerging markets with high commodity dependence or close Chinese trade links, Fitch Ratings said.
Eyes were also on the development of China-US trade talks.
China warned the United States on Sunday that any agreement reached on trade and business between the two countries will be void if Washington implements tariffs and other trade measures, as the two ended their latest round of talks in Beijing.
For the day, consumer and real estate sectors led the advances, rising 3.3 percent and 3.5 percent, respectively.
Bucking a broad rally, shares of film and TV makers slumped, as Beijing launches tax evasion probe into the industries, with an index tracking major media firms closing at a near four-year low on Monday.
Solar power shares were also dumped as Beijing cuts subsidy. Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.15 percent while Japan's Nikkei index closed up 1.37 percent.
At 07:02 GMT, the yuan was quoted at 6.4182 per US dollar, 0.02 percent firmer than the previous close of 6.4195. The largest percentage gainers in the main Shanghai Composite index were Fuda Alloy Materials Co Ltd up 10.01 percent, followed by Qingdao Tianhua Institute of Chemistry Engineering Co Ltd gaining 10 percent and Guangdong Champion Asia Electronics Co Ltd up by 9.99 percent.
The largest percentage losses in the Shanghai index were Aurora Optoelectronics Co Ltd down 10.08 percent, followed by Chengtun Mining Group Co Ltd losing 10.02 percent and Tongwei Co Ltd down by 10.02 percent.
So far this year, the Shanghai stock index is down 6.5 percent, the CSI300 has fallen 5.5 percent while China's H-share index listed in Hong Kong is up 4.5 percent. Shanghai stocks have declined 0.14 percent this month.