Fu Chenghao/Shanghai Daily news 

Chinese stocks rose yesterday amid an increased turnover with the benchmark Shanghai Composite Index hurtling past its one-year moving average. ZTE Corp and Anhui Conch Cement Co led the gains.

The Shanghai Composite Index, which covers yuan-denominated A shares and foreign-currency B shares, advanced 1.11 percent to 1,169.86 on a turnover worth 11.02 billion yuan (US$1.36 billion) from 6.78 billion yuan on Wednesday.

The Shenzhen Composite Index, which tracks the country's smaller bourse, surged 1.22 percent to 281.64.

"It's the institutional buying that was responsible for the active trading, and the index may further rise in the coming sessions," said Wei Wei, a West China Securities Co trader.

ZTE, China's biggest publicly traded telecom equipment maker, rose more than 6 percent from the last quoted price before the company started its state-share sale program. The company resumed trading yesterday when it still rose 1.95 percent to 9.90 yuan on an ex-rights basis. Most companies fall on the first day of trade after their post-reform plan is completed as enlarged shares could dilute prices.

Other telco counters remained in demand amid bullishness over the third-generation technology which could generate a trillion yuan industry in China with the world's biggest number of phone users.

Big cap China United Telecommunications Corp added 1.79 percent at 2.84 yuan.

Anhui Conch, the nation's biggest cement producer, surged 3.56 percent to close at 9.90 yuan after saying two foreign strategic investors had agreed to acquire around 14 percent of its state-owned stake.

China Petroleum & Chemical Corp, or Sinopec, put up 0.43 percent to 4.62 yuan. The top Asian refiner said on Wednesday its parent had received a one-off 10 billion yuan compensation from the government for losses stemming from price limits on refined oil products.