Blue chips lead sharp rally on mainland

Blue chips led mainland shares sharply higher and turnover rose yesterday because of a growing view that the market's bear run may finally have left valuations at reasonable levels.

The Shanghai Composite Index ended up 3.64 percent at 2905.014 points, near its intra-day high of 2910.481, after gaining 1.54 percent on Tuesday. It was the highest close in a week, leaving the index 53 percent below last October's peak. Over 60 Shanghai shares rising to their 10 percent daily limits.

Turnover in Shanghai A shares expanded to 67.2 billion yuan, still modest but up from Tuesday's 49.7 billion yuan.