Key China stock index rises 5.16% more as Govt steps work

Chinese stocks surged for a second day on Friday as a government rescue plan offered a respite from a month-long <g data-gr-id="19">rout</g>, but analysts warned of further uncertainty and volatility ahead. 

The rally also provided some support to regional markets, which had earlier this week been hammered by fears about a spillover effect beyond China’s borders. By midday, the benchmark Shanghai Composite Index had surged 5.16 <g data-gr-id="12">per cent</g>, or 191.56 points, to 3,900.89. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, jumped 4.00 <g data-gr-id="13">per cent</g>, or 78.26 points, to 2,033.61. The Shanghai market rocketed 5.76 <g data-gr-id="14">per cent</g> <g data-gr-id="15">yesterday,</g> after the government announced additional policies to avoid a market crash. They came after the index plunged by almost a third in less than four weeks.