BEIJING, March 6 (Xinhua) - Chinese shares continued to rally Wednesday, with the key Shanghai index reaching its highest level since June, boosted by the government's plans to cut taxes and expand investment to support the economy.
The benchmark Shanghai Composite Index gained 1.57 percent to finish at 3,102.1. The Shenzhen Component Index climbed 1.09 percent at 9,700.49.
Combined trading volume of the two indexes expanded to 1.11 trillion yuan (around 164.99 billion U.S. dollars), the highest level since November 2015.
Gainers outnumbered losers 1,177 to 245 on the Shanghai bourse and 1,673 to 400 on the Shenzhen bourse.
The textile machinery industry saw an increase of 3.84 percent. Zoje Resources Investment Co., Ltd. rose by the daily limit of 10 percent to close at 3.65 yuan per share.
The brokerage sector led the gains. Many brokerages including Caitong Securities Co., Ltd., Tianfeng Securities Co., Ltd. and CSC Financial Co., Ltd. all climbed by the 10 percent daily limit.
Wednesday's rally came following a rebound on Tuesday after the government announced its plan to reduce tax burdens and social insurance contributions of enterprises by nearly 2 trillion yuan this year.
The country will reduce the current value-added tax rate of 16 percent for manufacturing and other industries to 13 percent, and lower the rate for such industries as transportation and construction from 10 percent to 9 percent, according to a government work report delivered Tuesday morning by Premier Li Keqiang at the annual session of the National People's Congress.
Supporting measures, like increased tax deductions for producer and consumer services, will be taken to make sure that tax burdens in all industries do not go up.
The ChiNext Index, China's NASDAQ-style board of growth enterprises, gained 1.43 percent to close at 1,700.5, exceeding the 1,700-point level again since last June.
The brewing sector, however, suffered the most. Beijing Shunxin Agriculture Co., Ltd. fell 2.03 percent to 44.48 yuan per share.
