At the close, the Shanghai Composite index was up 0.71% at 3,576.20. The blue-chip CSI300 index was up 1.77% at 5,513.66, the strongest close since January 2008.
Gains were led by the consumer and financial sectors, with the sub-indexes climbing 1.58% and 1.02%, respectively.
The smaller Shenzhen index ended down 0.08% and the start-up board ChiNext Composite index closed 1.519% higher.
Market sentiment was also supported by the central bank’s pledge to keep its monetary policy accommodative. The People’s Bank of China said on Wednesday it would make its monetary policy flexible, targeted and appropriate in 2021, focusing on supporting small firms as the economy recovers.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.56%, while Japan’s Nikkei index closed up 1.6%.
So far this year, the Shanghai stock index is up 3% and the CSI300 has risen 5.8%, while China’s H-share index listed in Hong Kong is up 0.7%. Shanghai stocks have risen 2.97% this month.