Chinese shares extend gains on financial heavyweights

BEIJING -- Chinese shares continued their rally on Wednesday as investors chased financial heavyweights.

The benchmark Shanghai Composite Index rose for the fourth consecutive trading day, gaining 1.31 percent to end at 3,061.02 points. The Shenzhen Component Index added 1.11 percent to close at 10,786.72 points.

Brokerage firms, banks and infrastructure construction led the gains on Wednesday.

CITIC Securities, an industry leader, continued to rise by the daily limit for the second consecutive trading day to end at 32.75 yuan per share, as investors expect a bullish market and increasing trading volume to benefit brokerage companies' revenues.

The combined turnover on the two bourses expanded sharply to 908.67 billion yuan ($148.63 billion) from 792.88 billion yuan on the previous trading day.

Banks rose across the board on Wednesday as it was reported that China's policymakers might ease the stringent loan to deposit ratio requirement for commercial banks which can increase credit supply. Capped at 75 percent, the ratio is a statutory supervision indicator to prevent banks from excessive lending activities.

Bank of Ningbo and China Minsheng Bank both rose by the daily limit of 10 percent to close at 15.46 yuan and 9.47 yuan per share, respectively.

Strong performance in the infrastructure construction sector helped boost the benchmark index. China Railway Erju Co Ltd surged by the daily limit of 10 percent to 11.97 yuan per share.

Earlier this week, China's top economic planner, the National Development and Reform Commission, approved the construction of a new Beijing airport worth nearly 80 billion yuan, which was followed by approval of five highway projects.