Stock exchanges rebound, boosted by details of reform

Stocks in the Chinese mainland recovered Wednesday following a fall on Tuesday.

The benchmark Shanghai Composite Index rose by 13.49 points or 0.62 percent to close at 2,206.61 points on Wednesday. The Shenzhen Component Index rose 49.47 points or 0.58 percent to 8,510.68 points.

Combined turnover on the two bourses on Wednesday was 213.7 billion yuan ($38.24 billion), down from Tuesday's 233 billion yuan.

On Tuesday, leaders in China's financial sector, including the governor of the People's Bank of China and the chairman of the China Securities Regulatory Commission (CSRC), elaborated on financial reform plans.

PBC Governor Zhou Xiaochuan said the country would move toward a more market-driven interest rate regime, and a self-regulated financial system. And CSRC Chairman Xiao Gang said at a forum held in Beijing Tuesday that the regulator should reduce unnecessary intervention.

The promise of reform helped boost financial stocks Wednesday.

More than a dozen stocks in the aerospace and armaments sectors surged by the daily limit of 10 percent Wednesday, including Xian Aero-Engine Plc and Beijing Aerospace Changfeng Co, which rose to 22.22 yuan and 16.12 yuan, respectively.

Stocks linked to the Tianjin free trade zone also gained on Wednesday, with Tianjin Jinbin Development Co rising by 10 percent to 6.15 yuan.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, was almost flat, inching up by just 1.10 points or 0.08 percent to 1,299.26 points at the close Wednesday.