Stock rally brings sighs of relief

China's stock market rebounded strongly on Wednesday as the central bank sent red Spring Festival envelopes and the securities watchdog vowed tighter supervision.

The benchmark Shanghai Composite Index surged by a significant 2.16 percent to 2,051.75, and turnover soared to 84.1 billion yuan ($13.77 billion) from 52 billion yuan on Tuesday.

"It is too soon to tell whether a systematic rally is coming, but everyone is breathing easier with the central bank injecting liquidity and confidence into the market," said Zito Ji, an analyst with a mutual fund in Shanghai.