(Yicai Global) Oct. 09 -- China's stock markets closed higher with enlarged turnover in the first morning session after the National Day holiday. Shares posted widespread gains with the benchmark index hit a new 22-month high.

The Shanghai Composite Index pulled back from the 22-month high of 3410.17 points, but still up 1.24 percent to 3,390.51 points at the close of early trade, with a turnover of CNY139.2 billion(USD21.1 billion).

The Shenzhen Component Index extended gains to 1.93 percent at 1,1300.74 points, with CNY188.9 billion (USD28.6 billion) exchanged. 

The Growth Enterprise Index rose up 1.26 percent to 1,890.53 points, turning over CNY328.2 billion(USD49.7 billion).

The People's Bank of China (PBOC) has announced a targeted reduction in the reserve requirement ratio (RRR) to encourage commercial banks to improve credit support for small businesses, impoverished groups and agriculture, among others.

Although the measure will go into effect in the next year, it still inspired the optimistic sentiment of the market.

"Instead of taking effect immediately as usual, it leaves a three-month gap, which is a policy innovation," Tao Dong said to Xinhua Net, managing director and chief economist of Credit Suisse in Asia, 

Due to the gap between announcement and implementation, in the final quarter of 2017, banks will be inspired to channel more energy into inclusive finance to meet these requirements, Tao said. "Whether, and to what extent, a bank can enjoy the favorable policy depends on its effort," Tao said.

Analysts estimate PBOC's move will lead to more than 100billion US dollars pumped into the real economy.