Beijing - China's two stock market indices climbed sharply on Monday as analysts said they expected the government to introduce more measures to stimulate the economy.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currencies, gained 43.35 points, or 2.25 per cent. to close at 1,971.01 points.

The smaller Shenzhen Component Index also climbed by 3.14 percent, or 15.86 points, ending the day's trading at 520.38 points

Financial and property shares led the rally, which followed heavy losses in the two markets last week.

The government on Monday reported 9-per-cent growth in estimated gross domestic product for July to September, maintaining China's fast but marginally slower expansion despite global financial woes.

The State Council, or cabinet, on Sunday said China would focus on developing rural areas and measures to encourage more loans for small businesses for the rest of this year.

The global financial turmoil would have a gradual effect on China and the government would "adopt flexible and cautious macroeconomic policies" to maintain growth, the State Council said in a statement.

The statement said China would also cut the tax on home sales to encourage people to buy apartments, after sales slumped by more than 50 per cent in Beijing and 39 per cent in Shanghai in the first eight months of this year. (dpa)