THE Shanghai market closed higher in the morning session after the State Council said more measures to stimulate the market are being discussed.

The Shanghai Composite Index added 1 percent, or 19.17 points, to 1,929.11 points. Turnover was 13.6 billion yuan (US$2 billion). Gainers outnumbered losers 656 to 191 and 61 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, was up 0.46 percent to 502.59 points. Turnover was 6.4 billion yuan.

Du Ying, vice director of the National Development and Reform Commission, said yesterday at a press conference that the State council is aware of the critical economic situation and is planning further measures to shore up the market.

PetroChina, the biggest index component, added 1.60 percent to 12.09 yuan. Sinopec, the country's biggest oil refiner, increased 1.54 percent to 8.59 yuan.

Brokerages also made gains this morning as short-selling will soon be allowed. Sinolink Securities Co hiked 7.29 percent to 25.76 yuan while Haitong Securities added 4.44 percent to 18.98 yuan.

KweiChow Moutai Co Ltd, previously the only company with a share price above 100 yuan on the domestic market, dropped 4.07 percent to 96.49 yuan at 11:30am.