Chinese shares rose 0.84 percent on Wednesday to close at their highest level in more than 18 months as surging metal stocks helped extend the recent rally. The benchmark Shanghai composite index finished at 1,396.702 points, its highest close since October 11, 2004.
"Metal stocks remained a major force pushing up the market," said Chen Jinren, an analyst with Huatai Securities. Metals, a driving force behind Tuesday's rally, jumped again on Wednesday as many metal futures hit record highs on global and domestic markets. Major copper producer Jiangxi Copper Co Ltd saw its shares soar 29.1 percent to 9.85 yuan, to become the biggest gainer.
Zhongjin Gold Co Ltd surged 10.02 percent to 20.09 yuan, while Baoji Titanium Co Ltd closed up 8.45 percent at 5.65 yuan and Jien Nickel Co Ltd gained about 10 percent to 15.76 yuan.
The index has now jumped 27 percent since December 1, 2005, buoyed by powerful technical buying after a four-year market slump as well as a slew of official reforms aimed at building China into a more market-oriented economy.
While expecting the uptrend to continue in the long run, analysts also warned of a likely retracement as new share offerings could be resumed at anytime.
China quietly suspended initial public offerings in May last year soon after it kicked off a programme to sell over $250 billion in state holdings in listed firms.
On Monday the securities regulator said it would allow resumption of fund-raising on the Shanghai and Shenzhen stock exchanges, which analysts expect to pull down the market on liquidity pressure.
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