The benchmark Shanghai Composite index roared higher in afternoon trade, finishing the session up 3.69%.
The gain, the largest in percentage terms since July 10, was driven by 4% plus gains in the technology, industrial and consumer cyclicals.
It was also the first session in four that the index finished higher.
Before the start of trade today, the Shanghai Composite was sitting right on the level of the 200-day moving average, an important technical level at around 3,600 points which proved to be the bottom end of the big falls last month.
Now Shanghai benchmark index stands way above 3,600 points, widely known as the "policy bottom" that Gov will be keen to defend by all means
— George Chen (@george_chen) August 4, 2015
While the gains in Shanghai were punchy, they were nothing on the surge seen in small cap stocks with the CSI 500, Shenzhen Composite and tech-heavy ChiNext indices, all brimming with smaller new-age firms. They each finished with gains in excess of 4.5%.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.