Shanghai's key stock index made a strong move as shares rallied across the board this morning.

The Shanghai Composite Index jumped 3.98 percent, or 106.39 points, to 2,776.28 at 11:30am.

Gainers in the Shanghai market outnumbered losers 801 to nine while one stock did not change.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up a nearly identical 3.96 percent, or 32 points, to 839.19.

Market heavyweights such as China Petroleum & Chemical Corp, PetroChina Co and Industrial & Commercial Bank of China led the market higher in the morning session.

China Petroleum & Chemical Corp, or known as Sinopec, the country's biggest oil refiner, surged 5.10 percent to 9.90 yuan (US$1.44) while PetroChina, the biggest oil producer and the biggest market heavyweight, advanced 2.78 percent to 14.78 yuan.

Sinopec received 2.51 billion yuan in rebates on value-added taxes levied on gasoline and diesel imports in the second quarter, the Xinhua news agency said on Friday, citing the finance ministry.

ICBC, the second largest heavyweight in the Shanghai market, was among rising lenders in the early session.

ICBC gained 2.92 percent to 4.94 yuan. China Merchants Bank Co, the nation's biggest dual-currency credit-card issuer, increased 6.15 percent to 22.60 yuan. China Citic Bank, a unit of China's largest investment firm, rose 5.16 percent to 5.50 yuan.

Citic Bank said it expects first-half profit to rise more than 150 percent on higher interest revenue. Net income was 3.2 billion yuan a year earlier. China Merchants said its first-half profit may have more than doubled as the company extended more loans. Net income was 6.12 billion yuan a year earlier. Both banks cited unaudited preliminary figures.

Air China, the nation's largest carrier by market value, leaped the daily cap of 10 percent to 9.52 yuan while China Southern Airlines also soared 10 percent to 7.92 yuan.

China Eastern Airlines Corp, the nation's third-largest carrier by fleet size, jumped 8.66 percent to 7.28 yuan. China Eastern agreed to sell three Airbus SAS A340s for 1.29 billion yuan to ICBC Financing Leasing Co, a unit of Industrial and Commercial Bank of China Ltd, and then lease them back, the airline said in a statement to the Hong Kong Stock Exchange on Friday after markets closed.

China Vanke Co, the country's largest publicly traded real-estate developer, added 5.07 percent to 9.32 yuan while the Beijing-based developer Financial Street surged 9.97 percent to 8.60 yuan.

Vanke said apartment sales fell 22.8 percent in June from a year earlier. Sales were 4.37 billion yuan last month after the company sold apartments with a total floor area of 448,000 square meters, Vanke said in a statement today.

China Railway Group Ltd, Asia's largest construction company, said two of its subsidiaries won orders worth 951.6 million yuan. The shares climbed 4.18 percent to 5.48 yuan.