SHANGHAI, April 10 China shares hit their highest level in nearly two months after Beijing's securities regulator said it would allow cross-border stock investment between Hong Kong and Shanghai.
The Shanghai Composite Index ended up 1.4 percent at 2,134.3 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings rose 1.6 percent. Both indexes closed at their highest since Feb. 20.
Shares in securities firms surged on the announcement, with the CSI300 financial sub-index climbing to heights not seen since late last year.
Ping An Insurance Group of China jumped 7.1 percent, while CITIC Securities Co Ltd increased 9.7 percent, their biggest one-day percentage gains since Nov. 18, with CITIC shares their most traded since Oct. 2010. Sinolink Securities Co Ltd gained 5.2 percent.
But property shares fell as the National Development and Reform Commission (NDRC) said in a report that property debt may cause systemic financial risks, sparking worries over the funding situation in China's real estate market.
The CSI300 property sub-index closed down 0.9 percent, having lost 1.6 percent earlier in the day.
($1 = 6.1968 Chinese Yuan) (Reporting by Chen Yixin and Pete Sweeney; Editing by Jacqueline Wong)