Chinese stocks are soaring again

The heavy government intervention to support Chinese share prices is paying off, for now.

For a second consecutive session stocks are soaring.

In early trade the benchmark Shanghai Composite index added 5.8%, taking its two-day increase to 11.7% which, if sustained, will mark the largest rally seen on the index since September 22, 2008.

Large-cap stocks are outperforming with the SSE 50 index of the 50 largest firms listed in Shanghai, putting on 6.6%.

The moves seen in Shanghai are being replicated in other parts of the country. The Shenzhen Composite has added 4% with the tech-heavy ChiNext index up by a similar amount.

Unsurprisingly, the CSI 300 and 500 indices, comprising the 300 and 500 largest listed firms in Shanghai and Shenzhen, have put on 6.5% and 5% respectively.

The gains in Chinese stocks are buoying regional markets with the Nikkei, ASX 200 and Hang Seng up by 0.41%, 0.71% and 1.9% respectively.

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