The Shanghai Composite Index surges over 2%.

Optimism fuels the rally.

News of government plans dims investor enthusiasm.

Concerns about slowing economy and corporate earnings.

Positive data from the services sector provides a glimmer of hope.

Foreign investors show increased interest in Chinese equities.

Hints of possible monetary easing.

Long-term outlook remains cautious.

Investors advised to remain vigilant.

The future of China's stock market depends on effective government policies.