Stock markets in Shanghai and Shenzhen advanced Wednesday after the securities authority revealed that it was reviewing plans to allow public funds to be invested in the A-share market.
The benchmark Shanghai Composite Index finished at 2,313.22 after surging 19.88 points, or 0.87 percent; while the Shenzhen Component Index rose 125.21 points, or 1.36 percent, to close at 9,333.24.
The markets opened higher Wednesday after the China Securities Regulatory Commission (CSRC) announced late Tuesday that it may authorize the country's insurance, housing and pension systems to take positions in mainland shares as part of a move to funnel more long-term liquidity into the capital market. Most sectors found support in this news, which kept markets above even throughout the trading day and lifted the Shanghai Composite back above the 2,300-point mark.
Brokerages also got a boost from a separate announcement from the CSRC that lower entry standards into the asset-backed securities market were in the works. China Merchants Securities Co jumped 8.43 percent to 13.77 yuan ($2.21).
Listed property developers also notched respectable gains. China Vanke Co, China's largest residential real estate developer by market value, surged 4.62 percent to 11.32 yuan. Vanke is one of the 50 companies scheduled to announce annual results for 2012 Wednesday evening.
Shares for liquor producers and distilleries, however, took a hit following reports Wednesday that CCTV, China's State television network, would be pulling all liquor commercials by the end of March. Hebei Hengshui Laobaigan Liquor Co lost 3.59 percent to 42.12 yuan.
Combined turnover at the two mainland markets totaled 172.2 billion yuan Wednesday, down from 206.7 billion yuan Tuesday.
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