Chinese shares rose 3.16 percent on Wednesday, echoing the largest overnight Wall Street rally on a U.S. presidential election day since 1984 and ensuing rises across Asia.
The benchmark Shanghai Composite Index jumped 53.91 points to 1,760.61. The Shenzhen index rose 3.47 percent, or 196.97 points, to 5,865.78.
Combined turnover rose to 51.36 billion yuan (7.55 billion U.S. dollars), from Tuesday's 34.8 billion yuan.
The U.S. market could see a strong rebound in the short run as Obama promised to pressure Congress to pass another stimulus plan immediately after the election. But a sustainable rebound would not be easy, said Minzu Securities analyst Liu Jiazhang.
Observers said Obama would take more pragmatic and active approaches to combat the worst financial crisis since the Great Depression, which could bolster China's exports and economy.
The news that large shareholders and senior executives of 136 listed companies increased their holdings by nearly 730 million shares, together with a 5 trillion yuan investment scheme by the communications industry, also contributed to the upbeat performance.
Financial stocks led the rise as the central bank spokesman Li Xiaochao said last weekend that loan restrictions would be removed to spur growth amid the financial crisis.
China Merchants Bank, the country's biggest credit card issuer, rose by the daily limit of 10 percent to 12.71 yuan. China Ping An rose 6.44 percent to 25.30 yuan. The Industrial and Commercial Bank of China, the country's largest lender, rose 0.81 percent to 3.72 yuan.
Shares of cement makers jumped by about 8 percent after the National Development and Reform Commission announced an industrial development plan for areas hard hit by this year's massive quake in the southwest, which could boost cement demand. Wuhu-based Conch Cement jumped 10 percent to 18.37 yuan.
The non-ferrous metal sector gained substantially on price rises in international markets. Jiangxi Copper Co., China's second-largest producer of the metal, rose 5.4 percent to 8.93 yuan. Zhongjin Gold ended at 25.49 yuan, up 6.56 percent.
Shanghai-based Shenyin & Wanguo Securities said in a note to investors that although a flurry of boosting policies had been announced, it would take time for them to bear fruit. The credit markets, for example, would begin to ease three to six months after the relaxed monetary policy took effect.
Hong Kong stocks jumped 455.82 points, or 3.17 percent, to close at 14,840.16 on Wednesday.
Turnover rose to 60.85 billion HK dollars (7.8 billion U.S. dollars) from Tuesday's 45.25 billion HK dollars (5.8 billion U.S. dollars).
(Xinhua News Agency November 5, 2008)
