SHANGHAI stocks ended high today, led by small-cap firms and emerging industries after Premier Li Keqiang called for less government intervention in a market economy.

The key Shanghai Composite Index added 7.79 points, or 0.35 percent, to 2,224.80. Turnover was 66.7 billion yuan (US$10.9 billion) at the trading close.

The government should delegate its power over economic matters and let the market play the lead role in distribution of resources, Li told a nationwide teleconference on Monday. He urged efforts to simplify administrative procedures, lower the threshold for startups, and foster small and medium-sized enterprises.

"Li's remarks promoted market confidence over China's economic transformation and gave a boost to new-growth enterprises," said Gong Dejun, analyst with China Galaxy Securities.

IT firms increased on media reports that the Ministry of Industry and Information Technology and the Ministry of Finance will set up a special fund to spur the development of the Internet of Things industry.

Tsinghua Tongfang Co jumped 3.7 percent to 7.48 yuan. Aisino Co, a computer applications producer, rose 1.7 percent to 13.76 yuan.

Environment-related stocks gained after a white paper released by the Information Office of the State Council said China will give priority to ecological projects. Beijing Capital Co, a company specializing in wastewater disposal, climbed 2 percent to 7.51 yuan. Tianjin Capital Environmental Protection Group Co increased 2.1 percent to 8.93 yuan.