SHANGHAI'S key stock index rose in the morning session, following strong performance of the global market after Greece signaled it won't hold a referendum on a bailout package.

The benchmark Shanghai Composite Index rose 0.78 percent to 2,527.66 points. Turnover fell to 57.9 billion yuan (US$9.2 billion) from yesterday morning's 84.4 billion yuan.

The index has been advancing in the past three days on speculation that China may ease its tight monetary policy to sustain economic growth after Premier Wen Jiabao pledged "fine-tuning" of China's macro-economic policies.

Concerns over worsening European debt crisis eased after Prime Minister George Papandreou said yesterday that he would scrap a referendum on Greece's bailout lifeline if the conservative opposition agreed to back the package in parliament.

Banks rose. Industrial and Commercial Bank of China rose 1.2 percent to 4.37 yuan. China Construction Bank added 0.8 percent to 4.91 yuan.

Source:shanghaidaily