China stocks log biggest advance in four months after government's plan

On Tuesday Chinese stocks recorded their biggest surge in nearly four months, after the government delivered its blueprint on reforming its economic system in 2015, which includes further opening up capital markets.

The State Council said in a guideline published on Monday that the nation needs to deepen the economic system reform in 2015 by further opening up the financial sector to both foreign and domestic investors, expanding capital markets, as well as to intensify the reform of state-owned enterprises.

The mainland China’s benchmark Shanghai Composite Index surged 3.1% to 4,417.55, its highest settlement in two weeks and its biggest daily percentage gain since late January.

In Hong Kong, the benchmark Hang Seng Index also climbed 0.4%, with the mainland-China-tracking Hang Seng China Enterprises edging 1.9% higher.

Financial shares were among the leaders with brokers surging. Huatai Securities Co. Ltd., one of China’s largest brokerage firms spiked limit-up by 10%, after it launched its Hong Kong initial public offering on Monday, aiming to raise up to $4.5 billion. Orient Securities Co. Ltd. and Dongxing Securities Co., Ltd.  also surged 10%. Haitong Securities  and Citic Securities Co. Ltd.  gained 7.5% and 6.6% respectively, as MarketWatch reports.

Banks also advanced, with China Merchants Bank Co., Ltd. rising 4.6%, and Bank of China Ltd, China Citic Bank Corporation Ltd., China Construction Bank Corporation and China Minsheng Banking Corp., Ltd. all jumping 3%.

Elsewhere in Asia, Japan’s Nikkei Average rose 0.7% to 20,026.38, back above 20,000 for the first time in three weeks. The index had risen for a third day in a row. The broader Topix gained 0.4%.

Seoul’s Kospi Composite Index tacked on 0.3%, while Sydney’s S&P/ASX 200 dipped 0.8%.