BEIJING, March 29 (Xinhua) -- Chinese stocks closed higher on Thursday led by strong performance by the financial sector.
The benchmark Shanghai Composite Index went up 1.22 percent to close at 3,160.53 points. The Shenzhen Component Index closed 1.18 percent higher at 10,755.92 points.
The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 0.38 percent to close at 1,842.19 points.
Combined turnover on the two bourses stood at 584 billion yuan (92.9billion U.S. dollars), up from 499.8 billion yuan the previous trading day.
Most shares gained, with gainers outnumbering losers 1,062 to 227 in Shanghai and 1,400 to 472 in Shenzhen.
Stocks related to the financial sector rose following news that China will roll out new tax cuts to boost high-quality development.
Bank of Nanjing rose 3.65 percent to close at 8.23 yuan and New China Life Insurance surged 4.17 percent to close at 46.95 yuan.
A State Council executive meeting chaired by Premier Li Keqiang on Wednesday made the decision that China will cut value-added tax (VAT) rates as part of a tax reduction package amounting to 400 billion yuan this year.
The tax rate, starting from May 1, will be lowered from 17 percent to 16 percent for manufacturing, and from 11 percent to 10 percent for transportation, construction, basic telecommunication services and farm produce.
This round of tax cuts will apply to all manufacturing companies. All businesses registered in China, be they joint ventures or wholly foreign owned companies, will be treated equally, according to the premier.
