Chinese shares prolonged Tuesday's rally and surged past the 2,800-point mark on Wednesday, led by real estate stocks.
The benchmark Shanghai Composite Index rose 4.26 percent to close at 2,849.68 points while the smaller Shenzhen index soared 4.77 percent to 9,766.37 points.
The ChiNext Index, the NASDAQ-style board of growth enterprises, finished 4.27 percent higher at 2,017.6 points.
Total turnover on the two bourses continued to swell, standing at 613.48 billion yuan (93.68 billion U.S. dollars).
The gains came across all sectors.
Property stocks extended their winning streak and posted handsome gains on Wednesday, pepped up by soaring home prices and pro-growth policies.
The People's Bank of China (PBOC) announced on Monday that it would cut its reserve requirement ratio (RRR) for commercial banks by 0.5 percentage points from Tuesday. The RRR cut warmed sentiment about China's property market.
Around 50 stocks in the property sector, which covers 123 firms, gained by the daily limit of 10 percent.
The sub-indexes related to construction, cement, and steel also ranked among the top gainers on Wednesday, thanks to the prospects of the property market.
The shares opened cautiously higher in the morning, and climbed steadily during the morning session. The gains accelerated after the midday break as small-cap stocks totally shrugged off the downbeat mood.
Market sentiment turned steadier after PBOC claims that that there was no basis for the the yuan to continue to depreciate.
China has a relatively healthy trade balance and low inflation, which are both favorable conditions for a stable yuan, said Chen Yulu, PBOC deputy governor.
