China stocks open up 0.45 pct after sell-off

SHANGHAI, July 30 (Reuters) - Chinese stocks opened up 0.45 percent on Thursday, managing a stable start after posting their biggest daily drop in eight months the day before in record turnover, on worries that banks may begin to restrict lending.

The Shanghai Composite Index .SSEC opened at 3,281.203 points.

The index had surged nearly 90 percent this year before Wednesday's tumble, fuelled by ample market liquidity as Chinese banks extended a record volume of new loans, sparking worries that share valuations had grown excessive.

Despite worries about the possible emergence of asset price bubbles, Chinese policy makers have reiterated their commitment to a loose monetary policy saying they believed the economic recovery had yet to establish a firm base. (Reporting by Edmund Klamann; Editing by Chris Lewis)