Chinese shares open up 1.77 percent

SHANGHAI, July 28, 2008 - Chinese share prices open up 1.77 percent on Monday after the central bank suggested monetary policy would focus more on maintaining growth than curbing inflation, dealers said.

The central bank said in a report issued on Sunday night that it will create "create a good environment for stable, relatively fast growth", while omitting a reference to a tight policy stance it adopted in December.

Dealers said the comments eased concerns over further monetary tightening, leading investors to build up positions in oversold banks and real estate stocks.

The benchmark Shanghai Composite Index, which covers A and B shares, was up 50.69 points, or 1.77 percent, at 2,915.79.

The Shanghai A-share index added 53.31 points, or 1.77 percent, to 3,058.90, while the Shenzhen A-share index rose 11.80 points, or 1.31 percent, at 914.75.

(Agencies)