Rising optimism ignites rally at mainland markets

Stock markets on the Chinese mainland shot ahead Wednesday as several heavily weighted sectors hit the gas on positive remarks from government officials.

The Shanghai Composite Index jumped 42.67 points, or 2.17 percent, to finish at 2,008.13; while the Shenzhen Component Index added 250.78 points, or 3.3 percent, to close at 7,851.25.

Combined turnover at the two exchanges accelerated to 158.73 billion yuan ($25.87 billion) Wednesday, up from Tuesday's 116.57 billion yuan.

Chinese Premier Li Keqiang said Wednesday afternoon at a symposium in Nanning, the capital of Guangxi Zhuang Autonomous Region, that the country's top priorities would be promoting economic restructuring, decentralization of power and the application of information technology. Investors cheered these statements, which were taken as a renewal of the government's determination to keep economic growth on track.

Help also came from Xiao Gang, the head of the China Securities Regulatory Commission, who said Wednesday that China will push forward with strong policies to protect the interests of retail investors.

Coming off the heels of Tuesday's slump, these assurances were a boon to most yuan-denominated equities. Nonferrous metal and financial shares posted the largest gains, rising by averages of 5 percent and 4.11 percent respectively.

Kingray New Materials Science & Technology Co, a Hunan Province-based nonferrous metal producer, closed at 9.86 yuan after attaining the 10-percent daily limit. Shaanxi International Trust Co also hit the limit to end at 17.75 yuan.

Property shares were swept along in the rising tide as well, surging by an average of 3.8 percent. Property developers China Sports Industry Group Co and Shanghai Prosolar Resources Development Co both hit the limit to end at 5.42 yuan and 9.22 yuan respectively.

Medical equipment stocks were laggards, carrying off the day's smallest gains after rising by an average of 1.46 percent.