Financial shares pull ahead as rally continues

Stock markets on the Chinese mainland notched a fourth straight day of wins Thursday as financial stocks took flight.

The Shanghai Composite Index edged up 14.34 points, or 0.64 percent, to close at 2,255.61; while the Shenzhen Component Index advanced 39.26 points, or 0.45 percent, to finish at 8,714.88.

Combined turnover eased to 281.5 billion yuan ($46.00 billion), down from Wednesday's 347.6 billion yuan.

Both indices opened lower Thursday and struggled to make headway throughout morning trading. Rallies among banking, securities and insurance stocks injected fresh life into the markets during the afternoon, eventually spurring the Shanghai Composite to it highest close in three months.

Shanghai Pudong Development Bank Co surged 8.96 percent to 12.28 yuan. Guoyuan Securities Co added 3.41 percent to 10.01 yuan. New China Life Insurance Co rose 2.31 percent to 25.28 yuan.

Rare earth, nonferrous metals and coal stocks posted some of the day's biggest losses.

Chinese Premier Li Keqiang said Wednesday at the opening ceremony of the Summer Davos in Asia forum that reforms in China will bring vitality to the economy, according to local media reports.

Guo Yiming, a senior analyst at Shaanxi Jufeng Investment Information Co, credited the surge among financial equities to mounting investor confidence in China's economy.

"But there are still uncertainties centering on what reforms will mean for China," Guo told the Global Times.