Chinese stocks up on financial reform prospects

Chinese shares closed higher on Wednesday amid remarks by China's top securities regulator saying that reform of China's capital market must be market-oriented, law-based and global.

The benchmark Shanghai Composite Index rose 0.62 percent, or 13.49 points, to close at 2,206.61. The Shenzhen Component Index rose 0.59 percent, or 49.47 points, to finish at 8,510.68.

Total turnover on the two bourses shrank from 233.13 billion yuan (38.02 billion U.S. dollars) on the previous trading day to 213.8 billion yuan on Wednesday.

Xiao Gang, chairman of the China Securities Regulatory Commission (CSRC). said at the Caijing Annual Conference that capital market reform must first be market-oriented, as administration had played a dominant role in the past.

He said the only way to solve current problems in the market is to push forward market-oriented reform in a proactive yet steady manner.

The aviation and shipbuilding sectors led the gains on Wednesday with the sub-indices for the sectors up 7.86 percent and 3.59 percent, respectively.

Hafei Aviation Industry Co., Ltd., gained 7.62 percent to reach 30.92 yuan per share, and Guangzhou Shipyard International Company Limited rose 8.0 percent to reach 14.85 yuan per share.

The Hushen 300 Index, which reflects the performance of China's Shanghai and Shenzhen stock exchanges, closed at 2,424.85 points on Wednesday, up 12.69 points, or 0.53 percent.

The ChiNext Index, a Nasdaq-style board of growth tracking China's growth enterprises, added 0.09 percent, or 1.10 points, to close at 1,299.26 points on Wednesday.