China Stocks Gain on Better Wall Street Performance, Legalization of RWA Tokenization

MT Newswires Live02-09 16:35

Chinese stocks gained during the closing bell on Monday following an increase in risk appetite due to a high performance on Wall Street on Friday.

The Shanghai Composite Index, the main gauge of Chinese stocks, closed 1.4% or 57.51 points higher to reach 4,123.09. The Shenzhen Component Index rose 2.2% or by 301.70 points to 14,208.44.

The Dow Jones Industrial Average's close on Friday above the 50,000-mark inspired Chinese stock performance, Reuters reported Monday.

"Investors who are willing to hold the stocks through the [Lunar New Year] festival will be rewarded," Reuters quoted Caitong Securities as saying.

Chinese entertainment stocks also closed higher during the day on bets of better revenue due to increased holiday spending, according to the newswire.

Beijing Enlight Media (SHE:300251) closed 4% higher, while China Film Group (SHA:600977) finished 3% higher. Hengdian Entertainment (SHA:603103) closed 10% higher.

Meanwhile, real-world-asset (RWA)-related stocks soared on Monday after Beijing's plans to set up a legal system for the real-world asset tokenization business, according to another Reuters report the same day.

RWA-related companies such as Longshine Technology (SHE:300682) closed 9% higher, while Tansun Technology (SHE:300872) increased 3% during market close, and Yusys Technologies (SHE:300674) finished 6% higher following the development.

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