Aug 24 (Reuters) - China shares extended their gains on Tuesday, led by resources and liquor sectors, after the central bank pledged to stabilize the supply of credit and increase monetary support for small businesses and the economy.
** The blue-chip CSI300 index ended 1.1% higher at 4,888.39, while the Shanghai Composite Index gained 1.1% to 3,514.47 points.
** The resource sub-index, the new energy vehicle sub-index and the liquor sub-index led the gains, going up 2.8%, 2.7% and 2.8%, respectively.
** China's central bank chief Yi Gang said on Monday that the monetary policy should increase credit support to the real economy, especially small and medium enterprises, and enhance the stability of total credit growth.
** "In the short term, policy uncertainties may curb risk appetite of foreign capital," GF Securities said in a note. "In the medium term, 'common prosperity' policy would also strengthen those undervalued small growth stocks."
** A sub-index tracking defence shares dropped 0.6%, after a military file called on to reduce costs in raw material procurement.
** Shares of China Telecom Corp extended losses on Tuesday, dropping 10% to 4.95 yuan, after they surged 34% last week in their Shanghai debut. (Reporting by Shanghai Newsroom, Editing by Sherry Jacob-Phillips)
