SHANGHAI'S key stock index rose on speculation that a credit boom in October signals easier monetary policies.

The benchmark Shanghai Composite Index rose 1.63 percent to 2,521.44 points. Turnover was 46.4 billion yuan (US$7.1 billion).

Chinese banks had extended 586.8 billion yuan in new loans in October, the highest in four months, China's central bank said after the market closed on Friday.

Analysts suspected that the trend of easier lending would last at least until December.

Banks rose. Industrial and Commercial Bank of China added 1.4 percent to 4.35 yuan. China Construction Bank went up 2.1 percent to 4.88 yuan.

Gold miners rallied. Shandong Gold Mining Co jumped 3.6 percent to 40.45 yuan. Zijin Mining Co was up 2.6 percent to 4.76 yuan.

Source:shanghaidaily