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Chinese shares close 3.46% higher in morning session

(Xinhua)
Updated: 2008-12-04 14:39

Chinese share prices rose 3.46 percent in the morning session on Thursday, in reaction to a cabinet stimulus decision and an overnight Wall Street rally.

The benchmark Shanghai Composite Index was up 68 points, or 3.46 percent, from the previous close to end the morning session at 2,033 points.

The Shenzhen Component Index finished at 7,351 points, up 310 points, or 4.4 percent.

At an executive meeting presided over by Premier Wen Jiabao Wednesday, the State Council, or the cabinet, said nine measures would be taken to update the financial system, offer more loans for bolstering economic growth and raise the country's ability to ward against risks among financial institutions.

The benchmark Shanghai Composite Index has shed more than 67 percent from its peak set at mid-October last year amid worries among investors fueled by the deepening global financial turmoil.

Chinese equities surged 4.01 percent, or 75.78 points, to 1965.41 points on Wednesday, after China Securities Regulatory Commission chairman Shang Fulin said the regulator was considering allowing institutional investors to invest more in the equity market.