1st LD-Writethru: China's stocks close higher Thursday

Chinese shares ended the day higher on Thursday after intense fluctuations, with small-cap stocks remaining robust thanks to the government's focus on entrepreneurialism.

The benchmark Shanghai Composite Index edged up 0.31 percent to finish at 5,121.59 points, while the Shenzhen Component Index gained 1.2 percent to close at 17,889.69 points.

Total turnover on the two bourses shrank slightly to 1.8 trillion yuan (around 295 billion U.S. dollars).

Small-cap shares outperformed the benchmark index after the government vowed on Wednesday to roll out new measures including tax breaks and simplified approvals for those wanting to establish new businesses in their hometowns.

The ChiNext Index, China's Nasdaq-style tracking board of growth enterprises, gained 0.72 percent to end at 3,862.14 points.

However, heavyweights had a lackluster day as stock-index compiler MSCI decided to defer inclusion of Chinese mainland-listed A-shares in its global benchmarks.

China's stock market has become less volatile in recent trading days in contrast with sharp ups and downs in the previous week.

Gao Xiang, analyst with CITIC Securities, expects Chinese shares to continue to be stable but warned that substantial IPO subscriptions will weigh on the market next week. Endi