A 21-year-old woman who was allegedly caught on video bashing two Chinese students in racially motivated attack cried in court on Sunday night when told she could be jailed.

Shortly after, however, Jakkara Brigham was seen laughing and joking with guards as she was released on bail, being told she had narrowly avoided a jail stint, according to 9News.

The young woman appeared in Melbourne Magistrates Court charged with recklessly causing injury after video appeared online of two female Chinese university students being verbally and physically attacked.

Video appeared online of two female Chinese university students being attacked in the Melbourne CBD

Jakkara Brigham, 21, was released on bail after appearing in Melbourne Magistrates Court on Sunday over the incident

The two students were attacked on Elizabeth Street in the Melbourne CBD about 5.30pm on Wednesday, suffering non-serious injuries.

Ms Brigham sobbed in court as the magistrate warned her she could be waiting 12 months in custody for a hearing, saying she behaved 'appallingly' and calling her an 'unguided missile.'

Police are still searching for a second woman shown in the video that they say can help with their inquiries.

She is described as about 20-years-old and Caucasian, with a skinny build and shoulder-length blonde hair.

She was wearing a pink jacket on the night of the attack.

A bystander stepped in to help the two Chinese students after the alleged attack

Police are searching for a second woman they say can help with their inquiries

The two Chinese students previously spoke out about the attack saying they were taunted about coronavirus before being punched and kicked.

'She started saying get the f*** out of our country - you don't belong here,' one of the students said.

'I'm really scared they think it's OK to do to other people,' the other student added.

A bystander holding a dog stepped in to help the student after she hit the ground and the attacker began to kick her.

'You're a f***ing imbecile,' the attacker can be heard yelling after the bystander stops her.

She then apologised to the man before walking away.

Both students sustained non-serious injuries.

The video first began circling on the Korean Kakaotalk group chat but was then posted on other sites.

The caption on the video also suggested the attack was fueled by racism.

'Two white Australian girls were following two Asian girls, constantly swearing. Finally when they turned back to [ask] them to stop they started to assault them,' the caption on the video read.