China's stock market rebounded strongly on Wednesday as the central bank sent red Spring Festival envelopes and the securities watchdog vowed tighter supervision.

The benchmark Shanghai Composite Index surged by a significant 2.16 percent to 2,051.75, and turnover soared to 84.1 billion yuan ($13.77 billion) from 52 billion yuan on Tuesday.

"It is too soon to tell whether a systematic rally is coming, but everyone is breathing easier with the central bank injecting liquidity and confidence into the market," said Zito Ji, an analyst with a mutual fund in Shanghai.