Finance shares in the lead as markets revive

Stock markets on the Chinese mainland climbed out of their recent rut with a major rally Thursday.

The key Shanghai Composite Index added 1.21 percent, or 27.01 points, to close at 2,251.81; while the Shenzhen Component Index finished trading at 9,061.33 after surging 2.16 percent, or 191.48 points.

Trading sentiment improved considerably as investors jumped off the sidelines in search of bargains. Combined volume from the two exchanges soared to 226 billion yuan ($36.78 billion), up from Wednesday's 156 billion yuan to mark the largest daily turnover at mainland boards in over a month.

Both markets opened below their previous close Thursday, with the Shanghai Composite Index sliding to an early intra-day low of 2,211 points. Rallies in electronics and telecommunications stocks quickly turned things around though, with gains in these sectors setting the pace for the day. Afternoon spikes in financial and real estate development stocks added further momentum to the upswing.

Most of the day's biggest wins went to financial service companies. In the securities sector, Haitong Securities Co increased 3.67 percent to 11.03 yuan. Among banking stocks, Ping An Bank Co surged 5.23 percent to 20.31 yuan. For insurance equities, An Insurance Group Co of China clawed back from recent losses and rose 3.02 percent to 39.86 yuan.

Gold shares were mostly laggards Thursday as gold prices sank below $1,400 per ounce Wednesday to settle at a four-week low. Zhongjin Gold Corp shed 0.34 percent to 11.79 yuan.

The media and entertainment sector met resistance after impressive results earlier in the week. Beijing Hualu Baina Film & TV Inc fell 5.02 percent to 38.98 yuan.

Individually, Shanghai Jahwa United Co rose 3.32 percent to 65.08 yuan after ousted president Ge Wenyao said Thursday that he is willing to compromise with controlling stakeholder Ping An Trust Co.