(Xinhua)
Updated: 2008-04-23 19:43

BEIJING - Chinese shares surged 4.15 percent on Wednesday on a rally in financial, metal and mining stocks.

The benchmark Shanghai Composite Index, which covers both A and B shares, closed up 4.15 percent, or 130.54 points to 3,278.33 on Wednesday.

The index, however, was still 46.5 percent lower than its peak in October.

The Shenzhen Component Index added 5.45 percent to 11,784.15.

After the key index returned above the psychological 3,000-point mark from the previous trading day, investors' confidence grew and they started to hunt for bargains, a Shiji Investment analyst said.

Gainers outnumbered losers by 775 to 10 in Shanghai and 605 to 15 in Shenzhen. Aggregate turnover reached 120 billion yuan (about US$ 17.1 billion), up from 86.60 billion yuan on Tuesday.

The previously oversold market heavyweights were investor favorites, the analyst said. All the top 20 market heavyweights gained, driving up the index.

PetroChina, the heaviest weighted component of the Shanghai index, surged 3.19 percent to 16.52 yuan, while shares of the other oil giant, Sinopec, were up 6.46 percent.

Baosteel, the country's largest iron and steel maker, rose 6.61 percent to 10.96 yuan.

Financial stocks continued their recent gains as nearly half of the sector reported a rise of more than 5 percent. China Life, the country's leading insurer, rose 7.52 percent to 29.88 yuan.