Stocks post huge gain

Chinese equities rallied on Friday, sending the benchmark Shanghai Composite Index to its biggest gain in four months, amid speculation the government will ease funding restrictions for developers and lenders.

The Shanghai index rose 2.7 percent to 2,047.62 points, the biggest gain since Nov 18, after reaching record-low valuations on Thursday.

National planners are trying to bolster real estate and financial companies as the economy slows and bad debts increase. Allowing lenders to sell preferred shares would give them a new way to meet long-term fundraising requirements.