China stocks rise 0.5 pct, property up after meeting

SHANGHAI Dec 7 (Reuters) - China's key stock index rose 0.45 percent to a two-week closing high on Monday, led by the property sector after an annual economic policy-making conference stuck to a loose monetary stance as expected, offsetting worries that a series of IPOs would divert funds from the market.

The Shanghai Composite Index .SSEC ended at 3,331.897 points, after rising 7.13 percent last week in the best weekly gain in eight and a half months on signs of a solid economic recovery and steady future policy.

Gaining Shanghai A shares outnumbered losers by 751 to 131, while turnover dropped to a one-week low of 171 billion yuan ($25.05 billion) from Friday's 257 billion yuan.

China will stick to its "proactive" fiscal policy setting and "appropriately loose" monetary stance in 2010, according to a statement from the annual Central Economic Working Conference, which closed on Monday. [ID:nTOE5B608O]

The government will make it easier for rural migrant workers to settle in cities as a way to promote the urbanisation process, Xinhua said.

A system of residence permits, known as "hukou", currently prevents many migrant workers from enjoying social services in their adopted cities, discouraging them from staying there long-term.

The property sector led Monday's gains, boosted by the "hukou" reform, analysts said, with China Vanke 00002.SZ rising 2.67 percent to 12.29 yuan.

Nine IPOs will be open for subscription on the Shanghai and Shenzhen stock exchanges this week, with three on Monday including China Shipbuilding Industry (601989.SS), the country's largest ship equipment maker, which aims to raise up to 14.7 billion yuan. ($1=6.827 Yuan) (Reporting by Claire Zhang and Edmund Klamann)