THE Shanghai Composite Index yesterday rose to the highest in 11 weeks on news that eurozone governments have agreed on Greece's bailout package and also on investor speculation China will ease a credit crunch.

The index gained 0.75 percent to 2,381.43, the highest level since December 1.

Greece finally secured its second bailout as the eurozone finance ministers agreed on a US$171.9 billion deal and drafted a plan to trim Greece's debt to 120.5 percent of its gross domestic product by 2020, 8.5 percentage points lower than the original target.

Shippers advanced after the news about a successful bailout for Greece as Europe is China's biggest export market.

COSCO Shipping Co, a unit of China's largest operator of dry bulk cargo ships, gained 0.43 percent to 4.69 yuan (75 US cents). China Shipping Containers Lines Co added 0.7 percent to 2.88 yuan, and Zhongchang Marine Co rose 1.21 percent to 7.54 yuan.

"The A-share market is on a rising track, although at a slow pace," said Wang Qiongyu, senior analyst at Founder Securities.

"The market expectations of cut in bank reserve ratio were finally realized, which boosted investor confidence."

The Chinese central bank last Saturday announced a cut in the reserve requirement ratio for commercial banks by 0.5 percentage point, which will pump 400 billion yuan into the system.

"The cut in the bank's reserve ratio signals monetary policy relaxation. The credit crunch will be eased in the short run," China Central Huijin Investment said in a report.

The Industrial and Commercial Bank of China, the nation's largest bank, rose 1.36 percent to 4.46 yuan. The Bank of China jumped 1.65 percent to 3.08 yuan, and China Merchants Bank added 0.47 percent to 12.75 yuan.