1st LD Writethru-China stocks extend rally Thursday

Chinese shares closed up for the sixth consecutive trading day, with the benchmark Shanghai Composite Index closing 2.43 percent higher at 4,123.92 points.

The smaller Shenzhen Component Index gained 2.52 percent to close at 13,754.53 points. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, climbed 2.44 percent to end at 2,967.95 points.

Total turnover on the two bourses rose to around 1.4 trillion yuan (228.8 billion U.S. dollars) from 1.28 trillion the previous day.

The benchmark Shanghai index opened slightly lower in the morning,rebounded in the afternoon session and stabilized above 4,100 points.

Companies in the logistics, communications, and real estate industry led the rise, while many state-owned enterprises rose by their daily limit thanks to expectation of structural reforms.

Shares related to petroleum and high-speed railways had the worst performance.

Market fluctuated yesterday during the trading session as Inner Mongolia Yili Industrial Group, one of the country's main dairy product provider, released a report saying that the state-owned margin lender China Securities Finance Corp.(CSFC) decreased its holdings of Yili from 6.05 percent to 4.28 percent.

CSFC later clarified after the trading session that rather than selling off Yili's stocks, the company had transferred its shares to mutual funds, in line with regulations. The company added that its main goal would still be stabilizing the market and preventing systemic risks.

After turbulence wiped off 35 percent of stock value from a peak in mid-June, the government has taken measures such as prohibiting short-selling to prop up the market.

The China Securities Regulatory Commission has issued regulations that forbid stakeholders with more than 5 percent holdings of listed firms from selling off the shares. Endi