Beijing  - Shanghai stocks jumped more than 9 per cent Thursday, their biggest gain in more than six years, after the government cut the tax on equity trading, Xinhua news agency reported.

The government stepped in to revive the stock market two days after the benchmark index sank to less than 50 per cent of its October 2007 peak.

The Chinese government announced Wednesday it would cut the share trading stamp tax from 0.3 per cent to 0.1 per cent to boost the equities market.

The Shanghai Composite index surged 9.29 per cent to end at 3,583.03 points. The Shenzhen Composite index gained 8.7 per cent to close at 1,043.80 points. (dpa)