China stocks reopened on an upbeat note on Monday after a week-long holiday, with the main indexes rising the most in two months, but the gains were capped by a sell-off in property shares on curbs imposed in more cities to cool surging home prices.
Helping lift main indexes were advances in buoyant global markets while China took a long break for National Day.
The second US presidential debate drew limited attention from Chinese investors, who are more focused on the impact of fresh property measures introduced during the “Golden Week’’ holiday by more than a dozen Chinese cities.
China’s blue-chip CSI300 index rose 1.2 per cent to 3,293.87 points, while the Shanghai Composite Index gained 1.4 per cent to 3,048.14 points.
During China’s holiday, Asian shares flirted with one-month highs, while Wall Street stocks were also firm.
Investors also responded positively on Monday to a private survey result showing China’s services sector created jobs at the fastest pace in seven months in September as new business picked up.
But the fresh property restrictions knocked the property sector down 1.8 per cent on Monday.
Gold stocks were also down, as the prices of the precious metal slumped 4.5 per cent last week, its biggest drop since November 6, 2015.
But most other sectors rose, with resources shares rising sharply. Baoshan Iron & Steel and Wuhan Iron And Steel Co Ltd shot up 10 per cent, the maximum allowed, on their merger plans.