1st LD: Chinese stocks open lower on Fed's interest promise

Chinese stocks opened lower on Thursday, reflecting a drop in the global capital market as the Federal Reserve pledged to keep its target interest rate unchanged.

The benchmark Shanghai Composite Index was down 0.89 percent at 2,711.16 points, while the Shenzhen index opened 1.19 percent lower at 9,309.87 points.

Both indexes recouped some losses during the morning session.

The Federal Reserve said Wednesday that it will maintain the target range for the federal funds rate at 0.25 percent to 0.5 percent, pledging to keep the accommodative monetary policy to support economic growth.

The Fed said it will assess a wide range of information including measures of labor market conditions, inflation pressures and inflation expectations, and financial and international developments to decide the pace of future rates hikes.

The U.S. stock market gained before the statement, in a knee-jerk reaction to the recovery in oil prices, but fell back to negative territory on concerns that the Fed's dovish stance is offering acknowledgement to the worrisome capital market. Endi