Stocks of small and medium Chinese enterprises gained on Monday amid speculation they would stand to benefit the most from the abolition of a floor on lending rates over the weekend, Bloomberg reported. Analysts said cash starved SMEs can expect to receive better access to funding as banks introduce new packages targeting them. A measure of technology companies in the CSI 300 rose 3.4%, the most among the industry groups. Goertek (002241.SHE) surged 3.1% to RMB6.19 and Sanan Optoelectronics (600703.SHA) advanced 2.5% to RMB22.67. Some banks fell on concern their lending margins will shrink.
Categories