China's main stock index closed 0.87 percent higher on Wednesday, led by financials, property and airline stocks - sectors benefiting from the country's currency appreciation against the US dollar. While concerns about rising inflation, which could prompt the central bank to hike interest rates.
Capped the index's gains, the sectors were the focus of buying on Wednesday as investors believed higher interest rates would push up the value of the yuan.The Shanghai Composite Index closed at 3,930.060 points, having at one point gained 1.94 percent to an intraday high of 3,971.610. Rising stocks outnumbered losers by 456 to 395.
Turnover in Shanghai A shares was 78.2 billion yuan ($10.3 billion), up from Tuesday's light 58.7 billion yuan. China Vanke, the country's largest listed developer, rose 3.76 percent to 23.47 yuan. China World Trade jumped 9.26 percent to 20.05 yuan.
Stocks in the heavyweight financial sector were also strong. China Life Insurance gained 4.73 percent to 49.20 yuan. Shenzhen Development Bank, partly held by US private equity firm Newbridge Capital, surged 3.74 percent to 30.24 yuan. Several Chinese banks, including Shenzhen Bank, have given strong earnings outlooks for the first half of this year.
Airline stocks were also active on Wednesday, with China Southern Air jumping its 10 percent daily limit to 9.85 yuan. Air China surged 5.76 percent to 9.73 yuan.
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