Shanghai equities climbed 7.6 per cent on Wednesday, the biggest daily gain in four months, as optimism rose that the Chinese authorities would implement a stimulus plan to help the economy and support capital and property markets.

The Shanghai Composite Index rose to 2,523.282, the highest since the opening ceremony of the Beijing Olympics on August 8. Trading remained extremely thin compared with levels seen in the second quarter of last year, but at Rmb58.7bn ($8.56) were double Tuesday’s levels that were close to a two-year low.