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China: Shanghai stocks surge after two-day plunge

UBS Asset Management said turmoil in China's stock market will help extend a bull run in the nation's bonds, as investors channel more funds into debt securities to avoid equity volatility.

[SHANGHAI] Shanghai stocks rallied more than two per cent Wednesday as reports said billions of dollars in state cash was used to support the beleaguered market following a two-day slump.

The benchmark Shanghai Composite Index rose 2.25 per cent, or 74.13 points, to 3,361.84 and the Shenzhen Composite Index, which tracks stocks on China's second exchange, jumped 2.61 per cent, or 54.19 points, to 2,133.96.