Finance, property shares surge as rally continues

Stock markets on the Chinese mainland posted explosive gains Thursday as mounting investor confidence and torrential capital inflows hoisted most yuan-denominated shares.

The Shanghai Composite Index added 64.86 points, or 3.23 percent, to finish at 2,072.99; while the Shenzhen Component Index surged 333.52 points, or 4.25 percent, to close at 8,184.77.

Combined turnover at the two exchanges grew to 255.12 billion yuan ($41.58 billion) Thursday, up hugely from Wednesday's 158.73 billion yuan. Net capital inflows at the two exchanges surged as well to 23.43 billion yuan, up from the previous day's 15.07 billion yuan, as investors pitched themselves into the rising tide.

Most of the day's spoils went toward the financial sector, which gained 6.98 percent after 10 components hit the 10-percent daily limit. Industrial Bank Co and Ping An Bank Co were among the stocks which redlined to end at 10.40 yuan and 10.34 yuan respectively.

Analysts saw these performances as an outgrowth of the government's ongoing efforts to improve the financial industry after last month's sudden liquidity shortage. Mainland equities accelerated Wednesday after remarks uttered by Chinese Premier Li Keqiang and the head of the China Securities Regulatory Commission, Xiao Gang, were taken as indicative of the government's resolve to maintain economic growth and strengthen the capital market.

Meanwhile, real estate related stocks scored big as well Thursday after reports surfaced that officials were thinking about easing the financing restrictions in place on property developers. China Vanke Co climbed 4.86 percent to end at 10.78 yuan. Gemdale Corporation advanced 5 percent to end at 7.56 yuan.

A total of 2,228 mainland-traded stocks gained Thursday, compared with just 127 that declined.