Steel sector lifted as Baosteel sees shares rise

Baosteel, the listed arm of the newly merged China Baowu Steel Group, saw its shares soar by 7.5 percent on Monday, its first trading day after its suspension on January 24, perking up the country's steel sector which has been dogged with overcapacity and ebbing demand.

Trading of Baosteel resumed on Monday after an equity swap between the listed entities of Shanghai-based Baosteel Group and Wuhan Iron & Steel Group in Central China's Hubei province on Monday.

After the equity swap, the total issuance of Baosteel grew from 16.45 billion shares to 22.1 billion shares, with Baowu Steel Group taking up 52.14 percent of total equity.