China Stock Rally Extends as Policy Support Optimism Grows

A rally in Chinese shares continued Wednesday, a sign of growing investor confidence that authorities will take more forceful measures to sustain a nascent market recovery.

The Hang Seng China Enterprises Index advanced as much as 1.5%, while the mainland benchmark CSI 300 Index added another 0.7% to Tuesday’s 3.5% rise. The gains were more pronounced among smaller stocks, with the CSI 1000 gaugefor the segment jumping as much as 5.6%.

The gains built on an impressive rally Tuesday after policymakers ramped up their rescue campaign, such as widening trading curbs on certain investors and a pledge by ...