Beijing - China's main stock market soared by nearly 5 per cent on Monday amid a widespread rally led by state-run financial, aviation and property firms, and speculation that the government may try to bolster the real-estate sector.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currency, gained 122.65 points, or 4.59 per cent, to close at 2,792.54.

The smaller Shenzhen Component Index also gained 3.96 per cent, while only eight stocks fell of the 1,581 listed on the two markets.

The rise in Shanghai was the largest since June 19, with Sinopec, PetroChina and several major banks all making big gains.

Flagship carrier Air China, China Eastern Airlines and China Southern Airlines all hit the daily maximum rise of 10 per cent.

Shares in leading property developer Vanke jumped by 5.75 per cent, despite the firm reporting a fall of 23 per cent year-on-year in sales of apartments in June.

Vanke and other property firms were buoyed by a media report saying the government was considering easing recent restrictions on bank lending.

The surge on Monday continued a period of strong daily fluctuations amid an overall downward trend in China's inflated share prices, with many analysts expecting more volatility. (dpa)