Chinese shares rally Tuesday as key meeting lifts sentiment

BEIJING - China's major stock indices closed higher Tuesday as market sentiment improved after the country's central authorities promised bolder reforms and wider opening-up.

The benchmark Shanghai Composite Index rose 1.99 percent to close at 3,128.93 points, and the Shenzhen Component Index closed 2.19 percent higher at 10,556.82 points.

Combined turnover on the two bourses stood at 452.3 billion yuan ($71.79 billion).

The rally came after a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee on Monday said China will stick to a proactive fiscal policy and prudent and neutral monetary policy.

Market-based measures will be taken to reduce overcapacity, and support will be offered to new sectors and new business models.

Boosted by the news, heavyweights such as the banking and property sectors led the gains.

China Merchants Bank went up 2 percent to end at 28.86 yuan per share, while leading property developer China Vanke gained 3.41 percent to 30.93 yuan.

Bucking the trend, non-ferrous metals dropped across the board, with the Aluminum Corporation of China shedding 4.78 percent to close at 4.78 yuan per share.

The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, surged 3.07 percent to close at 1,806.86 points Tuesday.