The Composite Stock Index on the Shanghai Stock Exchange, which comprises yuan-denominated A shares and foreign-currency B shares, closed at 1,274.81 points, up 1.25 percent.

The major index of Shenzhen Stock Exchange, the Shenzhen Composite Index, was up by 1.30 percent, closing at 3,312.06 points.

The total turnover for the Shanghai and Shenzhen market stood at 9.5 billion yuan(1.18 million US dollars) and 5 billion yuan, up by 3.5 billion yuan in total over that of the previous day's trading.

Major blue chip companies, such as Sinopec and Baosteel, were up by 3.64 percent and 0.36 percent respectively, helping to boost the confidence of investors.

Another major blue chip company Yangtze Hydroelectric Power was up 1.09 percent.

Share prices for 1,009 listed companies on the two stock exchanges went up while 151 companies saw their shares drop. Shares of 91 companies maintained their closing prices from the previous day. Enditem