(Yicai Global) Oct. 12 -- China's mainland stock markets held to their surge in afternoon trading as chip makers took the lead. Markets have been bullish in the first two trading days of October after the National Day Holiday as the economic data remained positive.

The Shanghai Composite Index closed at 2.64 percent higher to 3,358.47. The Shenzhen Component Index was at 13,708.07, up 3.15 percent and the ChiNext Price Index, which tracks growth enterprises in Shenzhen, climbed 3.91 percent to 2,777.39.

Semiconductor Manufacturing International Corporation [SHA:688981], a leading chip maker based in Shanghai, rose 12.7 percent to CNY57.41 (USD8.54) at the close; National Silicon Industry Group [SHA:688126], a major supplier of SMIC, also soared 12.66 percent to CNY39.43.

The Shanghai Composite Index surged 4.36 percent over the last two trading days. The Shenzhen Component Index went up 6.2 percent and the ChiNext Price Index rose 7.87 percent.

China's Caixin General Services Purchasing Managers' Index posted a reading of 54.8 for last month, up from 54 in August, data released on Oct. 9 show. This marks an expansion for the fifth month in a row on stronger demand.

Editor: Ben Armour