China shares up 2.22% in morning trade

SHANGHAI (AFP) - Chinese shares surged 2.22 percent in morning trade on Thursday, after the government cut reserve requirements for banks to boost the faltering economy, dealers said.

The benchmark Shanghai Composite Index jumped 70.39 points to 3,244.52.

The Shenzhen Composite Index, which tracks stocks on China s second exchange, rose 0.88 percent, or 13.50 points, to 1,542.54.

China s central bank said Wednesday that it would cut the reserve requirement ratio -- the percentage of funds banks must hold in reserve -- by 0.50 percentage points, effective from Thursday.