China stocks surge 3-week high on stimulus hopes

China stocks rose again on Wednesday to a fresh three-week high, as demand for infrastructure shares helped the market maintain a rebound fuelled by economic stimulus hopes.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.9 percent, to 3,063.32, while the Shanghai Composite Index gained 1.1 percent, to 2,867.34 points.

After a sluggish performance in the morning, the indexes were lifted in afternoon trading by the infrastructure sector, which jumped over 2 percent as the government unveiled plans to invest 400 billion yuan ($61.42 billion) in infrastructure.

Some analysts have warned that the relief rally could soon peter out.