Shanghai bourse boosted by govt debt move

The Chinese stock market was jolted out of its prolonged doldrums on Tuesday by signs that the central government is moving to clean up the mess created by trillions of yuan of entangled local government debt.

The Shanghai Composite Index rose by 1.6 percent to close at 3,502.85, the highest level since May 2008, with airline, railway and infrastructure construction companies leading the rally.

Turnover increased to 601.5 billion yuan ($97.5 billion) from 479.4 billion yuan on Monday.