SMF reports that China's main stock index surged over 6% on Wednesday, posting its biggest gain since November, after the government said it would expand its fiscal spending plan and data supported hopes for an early economic recovery.
The Shanghai Composite Index rocketed 6.12% in heavy trade to close at 2,198.107 points, just off the day's high of 2,201.727. Sectors rose sharply across the board.
China will increase spending in areas such as infrastructure and manufacturing on top of the 4 trln yuan ($585 bln) stimulus package that it announced in November, a senior economic planning official said on Wednesday.
This fuelled hopes that Premier Wen Jiabao would make a major announcement on fresh stimulus steps in an address to parliament on Thursday. Analysts have been speculating that the package could be expanded to 6 trln yuan or conceivably even 8-10 trln yuan.