Chinese stock markets closed higher on the first trading day in December, ending a slump on the previous trading day.

The rally came after the country's central bank announced Wednesday it would cut banks' reserves requirement ratio (RRR) by 50 basis points effective on Dec. 5.

The benchmark Shanghai Composite Index rose 2.29 percent, or 53.45 points, to close at 2,386.86.

The Shenzhen Component Index gained 2.32 percent, or 224.48 points to finish at 9,917.86.

Combined turnover sharply expanded to 178.8 billion yuan (28.2 billion U.S. dollars), up from 143.5 billion yuan the previous trading day.

Gainers outnumbered losers 863 to 64 in Shanghai and 1,282 to 74 in Shenzhen.

Financial and property shares were among the leading driving forces of the rally, boosted by the central bank's decision to replenish liquidity amid easing inflation by a cut of the RRR, for the first time in three years.

Shares of property developers gained 3.4 percent as a whole. China Vanke rose 4.67 percent to 7.39 yuan per share. Poly Real Estate added 5.65 percent to close at 9.73 yuan.

Financial stocks led the rise. China Life jumped 7.88 percent; Bank of China rose 2.43 percent; The Industrial and Commercial Bank of China, the country's largest lender, rose 2.15 percent.

However, electric power-related stocks failed to be boosted by the news on Wednesday that the National Development and Reform Commission will raise the retail price of electricity for non-residential use by an average of 0.03 yuan (0.47 U.S. cents) per kilowatt-hour nationwide starting Thursday.

GD Power Development Co., Ltd. fell 1.52 percent to 2.6 yuan; Huaneng Power International Inc. fell 1.65 percent.

Source:xinhuanet