CHINA’S stocks jumped yesterday to a four-week high, led by property and resources shares, as investors welcomed the government’s decision to replace the top securities regulator and on signs the government was stepping up its economic stimulus efforts.

    Gains were broad based and helped lift the CSI300 index of the largest listed companies in Shanghai and Shenzhen up 2.21 percent to close at 3,118.87, while the Shanghai Composite Index gained 2.35 percent to 2,927.18 points.

    Liu Shiyu takes over as chairman of the China Securities Regulatory Commission (CSRC), assuming oversight of the world’s second-largest stock market in the wake of last summer’s slump that saw predecessor Xiao Gang criticized for mismanagement.

    The decision, seen as a move to restore market confidence, was cheered from China’s retail investors, many of whom were burnt by the recent stock market rout.

    “Consensus in general is taking this replacement as a bullish development,” said Hong Hao, Hong Kong-based equity strategist at Bocom International Holdings Co. “The market will be anticipating more supportive policies as the new chairman sets in.”

    Buying was also fuelled by hopes that China will step up stimulus to solve overcapacity problems, which the European Union Chamber of Commerce in China said have worsened since the 2008/09 global financial crisis.

    Shares of property developers jumped after China said Sunday it will reduce or stop issuing land for new residential housing projects in areas where there is a supply glut. That follows a cut in property transaction taxes announced Friday that will set the deed tax at 1.5 percent of the home’s value for first residences bigger than 90 square meters and at 1 percent for those smaller than that size.

    The prospect of a stronger recovery in the real estate market, as well as signs of increasing investment in infrastructure projects, in turn triggered a surge in resources shares on expectations of stronger demand for raw materials from cement to steel.

    “Sentiment is buoyant with some positive developments,” said Clement Cheng, a Hong Kong-based trader at RBC Investment Management Asia Ltd. “The replacement of CSRC chief and tax cut on home transactions are lending some support to the market.” (SD-Agencies)