Chinese stocks rise more than 3 %

China's stocks posted a sharp rise on Wednesday on speculation of more financial support from the government to shore up the bearish market. The Shanghai Composite Index recorded the greatest daily rally since the beginning of the year. The index advanced 3.04 percent, or 71.48 points, to close at 2,420 points. The Shenzhen Component Index rose 3.58 percent, or 360.46 points, to finish at 10,425.93. Combined turnover dramatically increased to 152.7 billion yuan (24 billion U.S. dollars) from 112.43 billion yuan the previous trading day. Most stocks saw gains. Winners outnumbered losers 929 to 6 in Shanghai and 1,339 to 10 in Shenzhen. The strong rally came after the Central Huijin Investment Ltd, an arm of China's sovereign wealth fund, bought shares in four major Chinese state-owned banks on Monday with an aim of "supporting the steady operation and development of major financial institutions and stabilizing their stock prices." The banks include the Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC) and China Construction Bank (CCB). The move is likely to be continued with measures by the government, which could include loosening monetary policies such as a cut in the reserve requirement ratio, the Securities Daily reported on Wednesday, citing Shen Zhengyang, an analyst with Northeast Securities. Financial shares and property developers gained and led the rise. China Vanke, the nation's largest listed property developer by market value, rose 4.26 percent to finish at 7.34 yuan per share. Poly Real Estate gained 4.78 percent to end at 9.21 yuan. Financial stocks rose across the board. China Life rose 4.17 percent to 15.98 yuan, Agricultural Bank of China gained more than 4 percent and China Construction Bank rose 1.5 percent.