Chinese equities continued rising Friday despite an overnight plunge on Wall Street, after the central government's announcement of stimulus plans for the light industry and petrochemical sector Thursday night.

The government will use its abundant foreign exchange reserves to boost imports and domestic demand as part of its efforts to check the economic slowdown caused by the global financial crisis.

China's stock market tumbled for a second straight day on Wednesday, and turnover shrank, because of fears that a surge in January bank lending could prove negative for the economy rather than signaling a recovery.