Stock market. Photo:VCG

China's Shanghai Composite Index surged more than 100 points, closing above 3,000 points on Thursday, the first time above the key benchmark since July 2, following a series of pro-growth policy measures rolled out by policymakers that help lift up investor confidence. 

The rally came after a key Communist Party of China (CPC) leadership meeting on Thursday that stressed the need to boost the country's capital market, while actively promote medium- and long-term funds to enter the market, the Xinhua News Agency reported.

The Political Bureau of the CPC Central Committee held a meeting on Thursday to analyze and study the current economic situation and make further arrangements for economic work. It was noted at the meeting that the fundamentals of the Chinese economy and the favorable conditions such as a vast market, strong economic resilience and great potential have remained unchanged, Xinhua said. 

All three major stock indices for the A shares posted gains of over 3 percent, with the Shanghai Composite Index rising by 3.61 percent, the Shenzhen Component Index up by 4.44 percent, and the ChiNext Index rising by 4.42 percent. 

This marks the third straight day that all three indices finished with gains.

Trading volume at the Shanghai and Shenzhen bourses reached a total of 1.1625 trillion yuan ($165.6 billion) on Thursday, 5.1 billion yuan higher than a day ago.

More than 5,100 stocks reported gains in prices, with more than 100 stocks reaching their daily upper limit. The real estate companies led the rally, followed by liquor, food, banks and securities companies. 

"With multiple favorable policies being released, we are witnessing a remarkable rally in market expectations. Three consecutive days of gains suggest the A-share market is now entering a new upward phase," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Thursday.

Chinese financial regulators on Tuesday released a slew of favorable policies to support the capital market which has lifted investor confidence.

China will issue a guideline to encourage medium and long-term funds to enter the capital market, the country's top securities regulator said on Tuesday. The China Securities Regulatory Commission (CSRC) plans to release six measures to promote corporate mergers and acquisitions, and work with various parties to facilitate the circulation of private equity and venture capital funds.

And, China's central bank, the People's Bank of China, will introduce new monetary policy tools to support the stock market's growth. The central bank will set up a swap program allowing securities, funds, and insurance companies to secure liquidity using asset collateral, said Pan Gongsheng, governor of the People's Bank of China, on Tuesday.

Global Times