China stocks open higher after central bank's rate cut

BEIJING - Chinese stocks opened higher on Monday morning after the country's central bank unexpectedly cut interest rates during the weekend to boost national economy.

The benchmark Shanghai Composite Index was up 0.75 percent, or 18.74 points to open at 2,505.53 points. The Shenzhen Component Index opened at 8,498.06 points, up 1.99 percent, or 165.76 points.

China cut the benchmark interest rates for the first time in more than two years as policy makers stepped up supports for the world's second-largest economy.

The one-year lending rate was reduced by 40 basis points to 5.6 percent, while the one-year deposit rate was lowered by 25 basis points to 2.75 percent, the People's Bank of China said on Friday.

Brokerage and property developers led the gains. As of 10:00 am, Gf Securities soared by the daily limit of 10 percent to 14.82 yuan ($2.41). China Vanke, the country's biggest property developer by market vale, surged 4.7 percent to 9.81 yuan, while Poly Real Estate, the second largest, advanced 6.63 percent to 6.27 yuan.