Key stock index closes at nearly 6-month high

Chinese shares closed with a strong rally on Tuesday led by the property sector, as investors believe the country's upcoming urbanization initiatives will push up demand for urban homes.

The benchmark Shanghai Composite Index surged 2.53 percent to end at 2,213.61, the highest level since early July, while the Shenzhen Component Index jumped 3.01 percent to finish at 8,891.57 points, the highest since mid-August.

Combined turnover on the two bourses expanded sharply to 220.8 billion yuan (35.1 billion U.S. dollars) from 136.7 billion yuan the previous trading day.

Gainers outnumbered losers by 963 to 11 in Shanghai and by 1,476 to 37 in Shenzhen

Property shares drove the rises on Tuesday over anticipation of detailed government policies to advance urbanization, which will fuel demand for urban homes.

In a statement issued after the central economic work conference, which was held earlier this month and set the tone for next year's policymaking, China said urbanization is a key driver of domestic demand and will be actively and steadily pushed forward in 2013.

Recent reports carried by Nanfang Metropolis Daily cited an unnamed official from the National Development and Reform Commission, China's top economic planner, as saying the country's urbanization initiatives will drive investment worth 40 trillion yuan in the coming 10 years.

China Vanke Co., Ltd., the nation's biggest property developer by market value, gained 5.97 percent to close at 10.12 yuan, and Poly Real Estate jumped 4.73 percent to 12.84 yuan per share.

Eight real estate firms, including AVIC Real Estate Holding Co., Ltd. and Guangzhou Pearl River Industrial Development Co., Ltd., saw shares soar by the daily limit of 10 percent on Tuesday.

Banking shares extended robust performances on Tuesday, with the sector's subindex up 3.3 percent.

Industrial Bank Co. gained 5.89 percent to 16.36 yuan, while Minsheng Bank rose 4.73 percent to 7.75 yuan.