Chinese shares soared on Wednesday, with the Shanghai Composite Index producing its biggest one-day percentage gain in more than five years as investors’ confidence continued to recover after Monday’s plunge.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 4.5 per cent to 3,548.88, while the Shanghai Composite Index climbed 4.7 per cent to 3,323.61 points. That was its biggest one-day gain since October 2009.

Two days earlier, both indexes tumbled 7.7 per cent, their biggest falls since 2008.

The financial sub-index leapt 6.5 per cent, while the property sub-index surged 4.7 per cent.

“Investor sentiment has recovered and Chinese share markets are still bullish,’’ said Zhang Yanbin, an analyst at Zheshang Securities in Shanghai.

Haitong Securities hit its 10 per’cent daily trading limit, while CITIC Securities climbed 7.7 per cent. Both stocks plummeted by the maximum daily limit of 10 per cent on Monday after falling foul of the regulators on Friday following investigations into margin trading.

Among the most active stocks in Shanghai were Bank of China, up 9.9 per cent at 4.89 yuan; CITIC, up 7.7 per cent at 28.75 yuan; and Agricultural Bank of China, up 5.3 per cent at 3.76 yuan.

In Shenzhen, Guosen Securities, up 4.0 per cent at 24.11 yuan; VANKE, up 5.7 per cent at 13.05 yuan; and BOE Technology, up 2.9 per cent at 3.19 yuan, were among the most actively traded.

Foreign investment flowing into Shanghai from Hong Kong through the mutual market access pilot programme took up 2.13 billion yuan of the 13 billion yuan daily quota.

Total volume of A shares traded in Shanghai was 41.0 billion shares, while Shenzhen volume was 21.1 billion shares.

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