Chinese shares gained 0.5 percent on Wednesday, building on Tuesday's rise, as copper stocks advanced on high global copper prices and banking shares gained as Minsheng Bank gained approval for a bond issue.
The benchmark Shanghai Composite Index closed 0.5 percent higher at 1,296.706 points. Jiangxi Copper, China's top copper producer, jumped 6.09 percent to 7.67 yuan. The company's share price has risen over 50 percent so far in 2006.
Minsheng Banking Corp, the second-largest lender listed on mainland Chinese exchanges, rose by nearly 0.6 percent to 5.2 yuan on Wednesday after it said it had received regulatory approval to sell up to $3.7 billion in bonds.
"Banking counters were affected by Minsheng's bond issuance today as investors felt more confident, as Minsheng and its counterparts are trying many channels to boost their capital for business expansion," said Peng Yong, analyst at ABN Amro Xiangcai Fund Management Co in Beijing. Other banking shares also rallied.
China Merchants Bank, the country's sixth-largest commercial lender and also one of the most actively traded stocks on Wednesday, rose to 6.44 yuan, for an increase of 0.78 percent.
China's major index has been Asia's worst performer over the past two years but began to rebound late last year in a strong technical rally. It is up more than 11 percent this year, boosted by Beijing's repeated pledges to boost the markets.
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