Equities surge on hopes of SOE reforms

Stocks posted their biggest gain in a month on Monday amid speculation that the government has approved the long-awaited reform blueprint of State-owned enterprises.

Buoyed by prospects of SOE reforms, the Shanghai Composite Index rose by 4.9 percent to 3,928.42 points on Monday, led by shipping, telecom and construction shares, while the Shenzhen Component Index jumped by 4.31 percent to end at 13,302.96 points.

The State-owned Assets Supervision and Administration Commission, the top regulator of State-owned enterprises, on Monday declined to comment on a report in the South China Morning Post, which said the State Council, China's cabinet, has approved a blueprint to shake up State-owned firms, the biggest of its kind in more than a decade.