Chinese equities rose for the third consecutive day on Wednesday following the news that the State Council has approved the long-awaited stock-index futures, which has not been confirmed till press time.

The benchmark Shanghai Composite Index went up 1.58 percent, or 50.84 points, to close at 3,262.6 points. The Shenzhen Component Index gained 1.04 percent, or 140.48 points, to close at 13,644.47 points.

Combined turnover on the two bourses expanded to 254.09 billion yuan (US$37.2 billion), from 194.38 billion yuan on the previous trading day.

Stocks of companies which are shareholders of futures companies posted a strong performance boosted by the news that the State Council approved the stock-index futures.

Daheng New Epoch Technology, Inc., whose subsidiary takes a 49 percent stake of Shanghai Dalu Futures Co., rose by the daily limit of 10 percent to close at 10.75 yuan (US$1.5).

The news that the stock-index futures has been approved stimulated Wednesday's market, said analysts. The stock-index futures, based on the major indices, would lead investors to have more heavy weights so that they can have a better control of the indices.

Officials with the securities watchdog have made remarks about the new product several times recently and the market talk say it would be launched soon. However, the news spread on Wednesday has not been confirmed by the regulator till press time.

Heavy weights contributed much to the rise of the major indices. PetroChina, the country's largest oil producer, increased 1.92 percent to 13.81 yuan (US$2.02). China Life Insurance Co., the country's biggest insurer, went up 3.61 percent to 31.59 yuan (US$4.6).

Financial stocks also helped the advance. The index for the sector climbed 3.39 percent as all banks saw their stock price up on market expectations that new bank loans may exceed 300 billion yuan (US$43.9 billion), higher than the 294.8 billion yuan (US$43.1 billion) of new credit extended in November.

Bank of Communications rose 6.62 percent to 9.18 yuan (US1.34) and China CITIC Bank gained 5.87 percent to 8.29 yuan (US$1.21).