The benchmark Shanghai Composite Index, a major index of Chinese shares, climbed to a new record of 2,536.39 points at the close of trading on Wednesday.

Powered by the blue-chip financial and telecommunication shares, the index, which covers both yuan-denominated A-shares and foreign currency-denominated B-shares, was up 2.28 percent on the previous day.

The Shenzhen Component Index closed at 6,489.69 points on Wednesday, up 133.12 points.

A ten-percent increase in the shares of China United Telecommunications Corporation was the main driving force behind the rise.

The Industrial and Commercial Bank of China shares rose by about three percent on Wednesday. Shares of Bank of China, Sinopec and Baosteel also registered steady growth.

Stimulated by the market heavyweights, the value of more than 800 stocks on both exchanges rose, while 500 declined.

The two exchanges have registered an aggregate turnover of 64 billion yuan (8.2 billion U.S. dollars).

Chinese analysts predict the Chinese stock index will continue to climb.

It is estimated that 200 billion yuan (25.6 billion U.S. dollars) of corporate annuity will enter the stock market over the next four years, according to recent deals inked by Chinese companies and fund management institutions. Analysts predict the fund will be invested in blue-chip stocks and therefore drive up the overall stock index.

Source: Xinhua