BEIJING, Nov. 27 (Xinhua) -- Chinese equities closed 1.05 percent higher on Thursday in response to an unusually large interest rate cut, but they gave up some gains due to profit-taking.

The benchmark Shanghai Composite Index finished the day at 1,917 points, up 1.05 percent or 19 points. The Shenzhen Component Index rose 2.29 percent, or 149 points, to 6,683.

The benchmark index has risen nearly 10 percent since the government announced a 4 trillion yuan (585.7 billion U.S. dollars) economic stimulus package on Nov. 9.

Gainers outnumbered losers by 650 to 169 in Shanghai and by 577 to 110 in Shenzhen. Combined turnover more than doubled to 123.48 billion yuan (17.64 billion U.S. dollars) from 60.88 billion yuan the previous day.

Shares rose sharply when the markets opened in response to an unusually large interest rate cut of 1.08 percentage points announced by the central bank after the market closed on Wednesday.

The Shanghai index jumped 6.05 percent at opening, with Shenzhen shares up 5.96 percent, before easing. Profit takers pared the indices back since mid-day.

Property and retail sectors had the biggest increases. China Vanke, the country's largest publicly traded real estate firm, climbed 3.09 percent to 7.01 yuan by the close. It had jumped 7.79percent in the morning session to 7.33 yuan.

Home applianceretailer Suning Appliance Co. rose 8.11 percent to 16.79 yuan. Hefei Department Store Group Co. was up 4.02 percent to 7.5 yuan.

The real estate sector was up nearly seven percent during the morning and 26 companies, including Gemdale, Chixia Development and Suning Universal, jumped by the 10 percent daily limit. At close the sector was up three percent.

Analysts said the real estate industry was set to benefit most from the bigger-than-expected interest rate cut.

The People's Bank of China (PBOC) said on Wednesday it would cut the benchmark one-year lending rate to 5.58 percent from 6.66 percent and the one-year deposit rate to 2.52 percent from 3.60 percent.

Easing was aimed at "ensuring ample liquidity in the banking system and promoting stable credit growth to allow the monetarypolicy to play an active role in supporting economic growth," the PBOC said in a statement.

It was the fourth interest rate cut since mid-September. It also was the largest cut since October 1997, when the PBOC slashed the one-year rate by 1.44 percentage points to support growth amid the Asian financial crisis.

The PBOC also said as of Dec. 5, it would lower the reserve requirement ratio by 1 percentage point at large banks and 2 percentage points at other banks.

Large lenders are Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China.

China lion Securities on Thursday suggested in its note that short-term investors should sell shares to prevent further losses of gains.
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