Beijing - China's main stock market jumped by 9 per cent on Friday, following the announcement of government measures to bolster share prices and earlier gains on Wall Street.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currencies, shot up by 9.46 per cent, or 179.25 points, to end the day at 2,075.09.

The Shanghai index gained 9 per cent immediately after opening, while the smaller Shenzhen Component Index had also soared by 9 per cent at the close of trading on Friday.

The gains followed the government's announcement late Thursday that it would scrap a 0.1-percent stamp duty on stock purchases.

The government also said its Central Huijin Investment Company would buy shares in three Chinese banks affected by the fallout from the bankruptcy of US investment firm Lehman Brothers.

The Industrial and Commercial Bank of China held Lehman bonds valued at 152 million dollars, while the Bank of China and China Merchants Bank held bonds valued at 
76 million dollars and 70 million dollars, respectively, state media said.

All three banks had lost heavily earlier this week as Chinese stocks followed global losses. (dpa)