Chinese shares open sharply higher on trading tax cut

BEIJING, April 24 (Xinhua) -- Chinese shares opened nearly 8 percent higher on Thursday morning, boosted by an overnight stock trading tax cut.

The benchmark Shanghai Composite Index opened 261.54 points, or7.98 percent higher at 3539.87 points on Thursday.

The Shenzhen Component Index opened at 12787.38, 892.14 points or 8.51 percent up from the previous close.

The Chinese government announced on Wednesday it was to cut the share trading stamp tax from 0.3 percent to 0.1 percent from Thursday in an effort to boost the equities market.

The Shanghai Index rose 4.15 percent to 3,278.33 on Wednesday before the tax cut announcement. Despite the rise, it had dropped 37.7 percent this year and 46 percent from its peak on Oct.16.