(Yicai) Sept. 27 -- The trading volume on the Shanghai and Shenzhen stock exchanges has surpassed CNY1 trillion (USD142 billion) each day for the last three trading days, thanks to a major economic stimulus package recently rolled out by the central government, according to the latest data.

More than 5,200 stocks advanced on the Shanghai and Shenzhen bourses today, with trades of more than CNY1.4 trillion (USD199.5 billion), according to data from financial information platform Wind.

Reflecting the buoyant stock markets, the Shanghai Stock Exchange Composite Index climbed 2.8 percent to approach 3,100 today, the Shenzhen Stock Exchange Component Index jumped 6.7 percent to 9,514.86 and the Beijing Stock Exchange 50 Index soared 11 percent to 717.02.

Meanwhile, Shenzhen’s Nasdaq-style ChiNext Index surged 10 percent to 1,885.49, the biggest single-day gain ever. And its daily trading volume set a new record at CNY400 billion (USD57 billion).

The food and beverage sector logged significant gains, primarily driven by liquor stocks. Nearly 20 stocks, including Sichuan Swellfun [SHA: 600779] and Shede Spirits [SHA: 600702], either hit the exchange-imposed limit, which ranges from between 5 percent and 20 percent, or surged by more than 10 percent. In the real estate sector, more than 20 stocks either surged by the limit or soared over 10 percent. In the non-banking financial sector, more than 10 stocks hit limit up.

By contrast, bank stocks slumped, with Agricultural Bank of China [SHA: 601288], Bank of Communications [SHA: 601328], China Construction Bank [SHA: 601939], and Industrial and Commercial Bank of China [SHA: 601398] all tumbling by more than 3 percent.

As the stock market rallies, a number of private equity firms have become bullish on the future market outlook.

Investors’ appetite for risk is expected to increase significantly as monetary policy takes the lead and fiscal policy exerts its strength, Founder Securities said in a research note released on Sept. 25.

The roll out of unexpectedly strong policies has boosted market confidence and the stock market is on the rebound, Galaxy Securities said in a report released yesterday.

On Sept. 24, China’s financial authorities announced a raft of easing measures, including reducing the reserve requirement ratio by 0.5 percentage point, trimming the central bank's policy interest rate by 0.2 percentage point, and cutting the interest rate on existing mortgages by 0.5 percentage point.

They also introduced a new relending tool aimed at helping commercial banks to provide loans to listed companies and their major shareholders to support stock buybacks and share increases.

Editor: Kim Taylor