The rest of Asia-Pacific markets also rallied, ending a tumultuous week on a high note.
Investors had been losing confidence in the market and daily turnover had fallen to less than a tenth of the levels of the middle of last year. A reduction in interest rates earlier in the week was largely ignored by investors and the Shanghai composite index had dropped to a 22-month low, with no signs of abating.
The Chinese authorities on Thursday said they would scrap the stamp duty on stock purchases and will use its own funds to purchase to buy shares, including banking shares, which have been pummelled over the year.
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