The Shanghai Composite index gained 2.2 per cent to 2,030.485 points, the first time it has closed above 2,000 since October 14. The value of shares traded rose to Rmb89.9bn ($13.2bn), the highest level in more than a month.
“[Authorities] have the ammunition to use to help growth to hit their implicit target of about 8 per cent GDP growth,” said Khiem Do, head of Asian multi-asset at Baring Asset Management in Hong Kong.
Airline companies bolstered the market with 10 per cent limit-up gains on the back of reports their parent companies could receive aid. China Eastern Airlines rose to Rmb3.85, Air China gained 9.9 per cent to Rmb4.65 and China Southernrose 9.9 per cent to Rmb3.67.