Chinese shares rally 3.48% on positive policy signal

BEIJING -- Chinese stocks rallied on Wednesday after a meeting presided over by Vice-Premier Liu He urged measures to maintain stable operation of the capital market.

The benchmark Shanghai Composite Index jumped 3.48 percent to close at 3,170.71 points. The Shenzhen Component Index ended 4.02 percent higher at 12,000.96 points.

The bounce-back comes as the financial stability and development committee under China's State Council held a meeting on Wednesday, urging measures to keep the country's major economic indicators within an appropriate range and maintain stable operation of the capital market.

The combined turnover of stocks covered by the two indices came in at 1.19 trillion yuan ($186.83 billion), up from 1.12 trillion yuan on the previous trading day.

Airline and brokerage shares posted stellar performances. Air China Ltd, the flagship carrier, jumped by the 10-percent daily limit to end at 9.26 yuan. Chinalin Securities Co Ltd rose by 10 percent to 18.47 yuan.

The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, gained 5.2 percent to close at 2,635.08 points.