China stock surpasses 2,600 mark

Chinese stocks rallied for a fifth day on Wednesday, fuelled by the rise in financial sectors after the unexpected rate cut.

The benchmark Shanghai Composite Index closed at 2,604.34, up 1.43 percent or 36.75 points, while Shenzhen Component Index advanced 0.81 percent to 8,763.78 points.

Banks, brokerage and insurance stocks led the gains on Wednesday, as Huatai Securities soared by the daily limit of 10 percent after the Nanjing-based company announced the board's approval of its H-share listing.

Everbright Bank, Nanjing Bank and Ningbo Bank jumped 7.02, 4.9 and 4.27 percent respectively, all of which have raised their deposit rate to maximum level since the China's Central Bank lifted its upper limit to 1.2 times of the benchmark rate.

Chinese stocks have rallied since the central bank unexpectedly cut interest rates for the first time in more than two years to bolster the economy.

The People's Bank of China has reduced the one-year lending rate by 40 basis points to 5.6 percent, and the one-year deposit rate by 25 basis points to 2.75 percent, according to an announcement on Friday.