1st LD-Writethru: Chinese shares open lower Thursday

Chinese stocks opened lower Thursday after Premier Li Keqiang said China fended off potential systemic financial risks during the recent market fluctuation.

The benchmark Shanghai Composite Index dropped by 1.62 percent to open at 3,190.55 points.

The Shenzhen Component Index opened 1.60 percent lower at 10,449.93 points. The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, opened 2.01 percent lower at 2,030.03 points.

Authorities have taken measures to prevent the spread of financial risk and stabilize the stock market during unusual fluctuations in June and July, Li said during discussion with global business leaders at Summer Davos in northeast China's Dalian city on Wednesday.

The measures are normal practice in global markets and do not mean the government is trying to replace the market or weaken it, he said.

China will continue to develop a multi-layered capital market and make it open, transparent and stable based on market forces and the rule of law.

Weighed down by volatile global markets, Chinese shares have gone through major fluctuations in the past two months with the benchmark Shanghai Composite Index falling around 40 percent from its peak in June.

"The recent volatility appeared to be a follow-up to the global financial crisis that broke out in 2008," Li said. "China is not the source of it, but instead remains as one of major drivers of global growth." Endi