China's stock market capitalization topped the country's gross domestic product (GDP) for the first time yesterday as the key stock index hit a fresh high.

The benchmark Shanghai Composite Index rose 1.95 percent to close at 4754.09 points, the foreign-currency denominated B-share index climbed 1.45 percent to close at 320.41 and the Shenzhen Composite Index went up 1.51 percent to 1,348.87.

That made the overall value of the two bourses surpass the 21.087 trillion yuan ($2.77 trillion) in GDP last year, according to data from China Securities Journal.

In the Shanghai market, 534 out of 901 stocks closed higher with turnover amounting to 138.09 billion yuan, a slide of 20 billion yuan from the day before.

New daily A-share opening accounts were 154,316 yesterday, the tenth consecutive day the figure has been over 100,000.

Analysts said investors were keen on large-cap blue chips amid expectations of high corporate earnings. The stock market is expected to remain volatile but maintain the upward trend, they said.

"Mutual funds are increasing their holdings of A-share stocks, mainly large-cap blue-chip stocks, boosted by good corporate earnings," said Ding Jian, an analyst at China Jianyin Investment Securities.

Industrial and Commercial Bank of China increased 2.67 percent to close at 6.54 yuan per share, while China Merchants Bank gained 5.49 percent to 36.10 yuan.

Ping An Insurance of China moved closer to the 100-yuan mark after a 7.41 percent growth, closing at 94.45 yuan. Its rival China Life followed with a 2.08 percent rise to 49 yuan.

In the property sector, China Vanke jumped 9.51 percent to 35.34 yuan. Oil also contributed to the rise, with Sinopec increasing 1.81 percent to 15.15 yuan.

Steel shares were also strong, with Baosteel surging 7.03 percent to 16.28 yuan. Shares in Aluminium Corp of China reached 32.65 yuan after rising 5.46 percent.

Shares across the Asia-Pacific region closed mostly higher after another rally on Wall Street overnight eased concerns about the US credit market.