Chinese shares rise as banks rally

BEIJING -- Chinese shares closed higher on Thursday, led by gains in financial shares.

The benchmark Shanghai Composite Index rose 0.64 percent, or 14.34 points, to finish at 2,255.61, and the Shenzhen Component Index added 0.45 percent, or 39.26 points, to finish at 8,714.88.

Combined turnover on the two bourses shrank to 281.5 billion yuan ($46.01 billion) from 347.6 billion yuan the previous trading day.

The financial sector rallied as Chinese Premier Li Keqiang said on Wednesday at the Summer Davos Forum that China will reform financial institutions and further ease market access, adding that the country will provide greater space for financial institutions of various ownerships to develop their businesses.

Shanghai Pudong Development Bank gained 8.70 percent to 12.25 yuan. Ping An Bank rose 6.15 percent to 13.47 yuan. Huaxia Bank surged 4.22 percent to 8.16 yuan.

Expressway and bridge construction shares and development zone-related shares also performed well.

The shipbuilding, non-ferrous metal and cement sectors lost ground, with the sub-indices for the sectors dropping 2.1 percent, 1.49 percent and 1.40 percent respectively.

The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, extended losses and closed slightly lower at 1,220.63 points, down 0.01 percent, or 0.07 points.