Developers lead Chinese shares to open higher Wednesday

Chinese shares opened higher on Wednesday, the first trading day after a week-long National Day holiday, thanks to gains from property developers.

The benchmark Shanghai Composite Index opened at 2,368.58 points, up 4.71 points, or 0.2 percent. The smaller Shenzhen Component Index opened at 8,134.37, up 54.02 points, or 0.67 percent.

The sub-index for property developers advanced about 1.5 percent at the opening.

Property heavyweights gained significantly. Poly Real Estate Group Co rose 3.6 percent to open at 5.75 yuan ($0.93). China Vanke Co Ltd. opened 3.9 percent higher to 9.54 yuan per share. Tontec Technology Investment Co Ltd jumped by the daily limit of 10 percent at the opening.

On Sept 30, China announced measures to loosen lending rules for mortgages and property developers, in a joint announcement by the People's Bank of China (PBOC), the central bank, and the China Banking Regulatory Commission.

Most economists said the broader-than-expected relaxation policies and clear credit-easing from the Chinese government should be a positive sign for the property market and house sales.