Shares rally on financing for Shanghai FTZ

Shares of the major companies in the proposed Shanghai Free Trade Zone extended their bull market on Monday following the release of a financing plan, while stocks in other possible FTZs tumbled amid an overall flat performance of the market.

Shanghai Waigaoqiao Free Trade Zone Development Co, the only listed company among the operators in the highly anticipated pilot area, reached its daily limit of a 10 percent increase when the market opened at 9 am.

The hike came after Waigaoqiao said in a filing to the Shanghai Stock Exchange on Friday it would raise up to 2.7 billion yuan ($441 million) for the initial stage of exploration in the area by issuing up to 267 million shares at 13.2 yuan per share at the lowest through a private offering.