Stock markets boosted by strong earnings by energy companies

Stocks in the Chinese mainland rallied on Wednesday, backed by strong earnings by energy companies and expectations of further reform in the energy sector.

The benchmark Shanghai Composite Index rose by 31.60 points or 1.48 percent to close at 2,160.46 points. The Shenzhen Component Index also jumped by 154.4 points or 1.84 percent to 8,553.37 points.

Combined turnover on the two bourses on Wednesday was 194.8 billion yuan ($31.96 billion). lower than Tuesday's 246.9 billion yuan.

Investors welcomed media reports that the China Securities Regulatory Commission will launch a preferred shares system as soon as possible, and that many firms in the banking, electricity and energy sectors are getting ready to issue preferred shares, which could alleviate fundraising pressure.

Strong earnings by big oil companies and hopes for further reform also boosted shares in the energy sector.

The China Securities Journal reported Wednesday that the government intends to allow private capital into the sector, which could alleviate the current domination of the industry by several large oil companies.

After announcing on Tuesday a 20.15 percent jump year-on-year in third-quarter net profit, China Petroleum & Chemical (Sinopec) Corp saw its shares rise by 3.46 percent to 4.49 yuan on Wednesday. Shares in PetroChina, which on Wednesday reported a 19.4 percent growth in third-quarter net profit, rose 2.23 percent to 7.78 yuan.

Henan Yuneng Holdings Co and Sichuan Mingxing Electric Power Co both rose by the daily limit of 10 percent.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, rose by 0.92 percent on Wednesday, ending at 1,273.29 points.