China stocks up over 2% as state margin lender cuts borrowing cost

China stocks rose on Monday after the state margin lender announced the resumption of a portion of its short-term lending business and cut borrowing costs for brokerages.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.4% to 3,249.44 points, while the Shanghai Composite Index gained 2.2% to 3,018.80.

Financial stocks such as brokerages led indexes higher, with the CSI300 financial sub-index gaining 3.3%.

Hong Kong shares edged up on Monday after mainland markets were buoyed by an announcement that the state margin lender would resume some of its short-term lending business and cut borrowing costs for brokerages.

The Hang Seng index rose 0.1%, to 20,684.15, while the China Enterprises Index gained 0.5%, to 8,928.65 points.

Total trading volume of companies included in the HSI index was 1.6 billion shares.