Chinese stocks rallied for the third consecutive day Monday after aggressive measures by authorities to shore up share prices that had dropped sharply over the past month, dpa reported. The benchmark Shanghai Composite Index closed 2.4 per cent higher. The smaller Shenzhen Component Index surged to close 4.8 per cent higher while the ChiNext Index, tracking growth enterprises, closed 5.8 per cent higher. China's central bank injected 35 billion yuan (5.7 billion dollars) into the money market by buying bonds late last week. The Shanghai Composite Index has tumbled by around 30 per cent since a peak on June 12, although it is still more than 60 per cent higher than a year ago, leading some analysts to see the recent volatility as a correction in the market.
