BEIJING - Chinese equities passed 2,200 points, up 3.02 percent, on Tuesday as investors anticipated more economic stimulus measures from the government.

An old man is seen at a brokerage house in Beijing, March 17, 2009. Chinese equities rose 3.02 percent on Tuesday as investors expect more economic stimulus measures from the government. [Xinhua]

The benchmark Shanghai Composite Index added 3.02 percent, or 65.04 points, to 2,218.33. The Shenzhen Component Index rose 4.58 percent, or 367.18 points, to 8,389.87.

Combined turnover was 170 billion yuan (US$24.89 billion), well up from 93 billion yuan the previous trading day.

Market confidence was spurred by media reports that the central government was planning more stimulus measures covering employment and incomes, international trade, interest and exchange rates as well as industrial production, in addition to the 4 trillion yuan package issued in November.

"There is still room for further stimulus plans," said Lu Zhengwei, chief economist with Industrial Bank, citing Premier Wen Jiabao's words during the Second Session of the 11th National People's Congress that the government was prepared for bigger challenges.

Chinese shares were also lifted by more than 3 percent gains in neighbouring markets. Japan's Nikkei 225 Stock Index climbed 3.18 percent, while Korean equities rose 3.41 percent. Australian shares were up 3.1 percent.

Real estate shares rose across the board on market expectations the People's Bank of China, the central bank, was to lower the deposit reserve ratio for the fourth time since the second half last year.

More than 10 property stocks rose by the 10 percent daily limit. Shanghai-based Winsan Industrial Corporation Ltd. added 10.13 percent to hit 4.13 yuan. Shenzhen Zhenye Group stock was up 10.05 percent.

The steel sector also saw rises, encouraged by the China Securities Regulatory Commission's approval for futures transactions of two types of steel products on Shanghai Stock Exchange.

Financial shares, including those of banks and brokers, continued to climb for the second day. Northeast Securities rose 8.05 percent to 21.62 yuan, while Changjiang Securities was up 5.33 percent to 13.04 yuan. Shares of the Bank of Nanjing closed at 12.67 yuan, up 4.8 percent. 

People monitor stock information at a brokerage house in Beijing, March 17, 2009. Chinese equities rose 3.02 percent on Tuesday as investors expect more economic stimulus measures from the government

A man reacts in front of the electronic screen showing stock information at a brokerage house in Wuhan, Central China's Hubei Province, March 17, 2009. Chinese equities rose 3.02 percent on Tuesday as investors expect more economic stimulus measures from the government.

A man monitors an electronic screen showing stock information at a brokerage house in Shanghai March 17, 2009.