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. Last Updated: 07/27/2016

Transportation, Retail Lead China's Stock Trade Record

SHANGHAI -- Chinese stocks surged to a record high on Monday, with the key Shanghai Composite Index gaining 3.6 percent to close at 2,933.19 on strong buying of retailers and transportation shares.

The smaller Shenzhen Composite Index jumped 4.2 percent to 700.20, also a record-high close.

Investors were emboldened after senior regulators meeting over the weekend did not show any signs that they intended to cool the market's recent rally.

The chairman of the China Securities Regulatory Commission, Shang Fulin, said the agency would encourage long-term investments in the stock market by mutual funds, state news reported Monday.

Turnover on the Shanghai index also surpassed previous records, totaling 104.86 billion yuan ($13.5 billion) versus Friday's 91.28 billion yuan.

Bus and taxi company Beijing Bashi surged by 10 percent, the daily limit, to 9.96 yuan; Daqin Railway jumped 10 percent to 10.07 yuan and Shanghai Airlines climbed 9.9 percent to 4.77 yuan.

Chengdu People's Department Store climbed 10 percent to 13.81 yuan; Beijing Wangfujing Department Store also jumped 10 percent to 30.35 yuan and Yinchuan Xinhua Department Store also hit the upside limit of 10 percent at 14.20 yuan.

Investors were also heartened by the outcome of a major financial meeting by top communist party leaders that ended during the weekend with pledges to continue to build up capital markets, analysts said.