China stocks rally Wednesday, key index up 2.87%

BEIJING - China's stocks rallied Wednesday after the central government pledged to boost domestic demand and maintain a stable investment increase.

The benchmark Shanghai Composite Index climbed 2.87 percent, or 56.77 points, to close at 2,031.91 points.

The Shenzhen Component Index finished at 8,091.68 points, up 289.93 points, or 3.72 percent.

Combined turnover on the two bourses expanded to 150.5 billion yuan ($23.89 billion) from 81.4 billion yuan the previous trading day.

More than 2,300 shares posted gains Wednesday, with 50 shares rising by the 10-percent daily limit.

The Political Bureau of the Communist Party of China (CPC) Central Committee said Tuesday that the country will continue to maintain continuity and stability in its macroeconomic policies in 2013.

The political bureau urged more efforts to boost domestic demand and increase stable investment next year to bolster the economy.

Cement producers were the day's biggest gainers, with the entire board jumping 7.98 percent. Fujian Cement Inc and Jiangxi Wanniangqing Cement Co rose by the 10-percent daily limit to close at 5.9 yuan per share and 11.28 yuan per share, respectively.

Brokerages also rose. Citic Securities Co, the country's biggest brokerage, gained 3.83 percent to finish at 10.56 yuan per share.

Bucking the trend, the liquor sector posted a lackluster performance due to a recent scandal involving the detection of plasticizer in wines produced by Jiugui Liquor Co Ltd.

Kweichow Moutai Co, the country's most renowned liquor maker, fell 0.16 percent to close at 196.64 yuan per share.