Chinese shares soar after transaction tax cut

Chinese shares soared early today after the government cut a tax on stock transactions in a move widely seen as a signal of support for the markets.

The benchmark Shanghai Composite Index surged as much as 9.6% to 3,593.2 in morning trade as investors resumed buying after weeks of holding back in hopes of market boosting news. It later dropped back to 3515.6, up 7.2%.