Chinese shares rose Thursday after the U.S. Federal Reserve said the world's largest economy is shrinking at a slower pace, but investors were cautious after the benchmark hit an 11-month high a day earlier, AP reported. The benchmark Shanghai Composite Index edged up 2.75 points, or 0.1 percent, to close at 2925.05. The Shenzhen Composite Index for China's second exchange also added 0.1 percent to 954.41. Investors were encouraged by the Fed's decision Wednesday to leave its main lending rate unchanged, analysts said. «It eased worries of higher interest rates, which is good to both commodities and capital markets. The Chinese market also interpreted this as good news,» said Mao Sheng, an analyst for Huaxi Securities in the western city of Chengdu. But trading volume was light as investors took a breather after the recent rally. Poly Real Estate Group gained 2.7 percent to 26.26 yuan, while Lander Real Estate Co. soared by the daily limit of 10 percent to 7.68 yuan. China Pacific Insurance Co., the nation's third-largest insurer, surged 6.4 percent to 21.38 yuan, after the official Shanghai Securities News said the company may go public in Hong Kong next year. Ping An Insurance Ltd., China's second-largest insurer, and China Life Insurance Ltd. both rose 2.5 percent _ Ping An to 46.92 yuan, and China Life to 27.47 yuan. Shares in companies from the northern province of Shaanxi enjoyed a bounce after the government issued a regional stimulus plan. Xi'an Kaiyuan Holding Group, a department store operator, surged 6.4 percent to 7.34 yuan, while Xi'an Minsheng Group Co., another retailer, added 4.6 percent to 6.1 yuan.
