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.

At the midday break the benchmark Shanghai Composite index added 5.16%, taking its two-day increase to 11.2% 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 5.33%.

The moves seen in Shanghai are being replicated in other parts of the country. The Shenzhen Composite has added 4% while the tech-heavy ChiNext index is 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 5.79% and 5.01% respectively.

The gains in Chinese stocks are buoying regional markets with the Nikkei, ASX 200 and Hang Seng up by 0.73%, 0.54% and 1.7% respectively.

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