Chinese shares opened 1.39 percent higher on Thursday following the State Council (Cabinet)'s decision Wednesday to encourage commercial banks to grant more loans for stimulating economic growth and to stabilize the stock market.

The benchmark Shanghai Composite Index, which covers both A and B shares, rose 1.39 percent, or 27.31 points, to 1,992.72 at the opening.

The smaller Shenzhen index was up 1.16 percent, or 81.94 points, to open at 7,123.00 points.

Chinese shares also got a boost from a strong overnight rally on Wall Street, analysts said.

(Xinhua News Agency December 4, 2008)