Shanghai market rises in early session

By Lydia Chen  |   2008-6-25  |     ONLINE EDITION

SHANGHAI'S key stock index climbed nearly 3 percent thanks to a rally across the board.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, climbed 2.84 percent, or 79.61 points, to 2,882.63 at 11:30am.

Gainers in the Shanghai market outnumbered losers 795 to five.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 3.86 percent, or 30.90 points, to 832.40.

Banks as well as developers continued yesterday's rise and led the market higher this morning.

Stocks also climbed after the China Securities Journal said China Life Insurance Co has been investing "large sums'' in mutual funds.

Industrial and Commercial Bank of China, the country's biggest lender, gained 1.54 percent to 5.28 yuan (77 US cents). Huaxia Bank jumped 3.50 percent to 10.35 yuan.

Shanghai-based Shimao Property Co surged the daily cap of 10 percent to finish the early session at 10.01 yuan. Poly Real Estate Co, the second-biggest developer by market value, added 5.91 percent to 14.70 yuan. It climbed 9.98 percent yesterday. China Vanke, the nation's biggest developer, gained 4.81 percent to 9.80 yuan.

Air China, the largest carrier by market value, increased 3.19 percent to 8.41 yuan.

Air China Ltd will work with Taiwan's two biggest airlines when it begins weekend charter flights to the island next month. The carrier has signed deals with China Airlines and EVA Airways Corp covering maintenance, refueling and other operations, it said in a statement yesterday.

The move by China Life, the country's largest insurer, is significant because of its size and its influence in the industry, especially its tendency to undertake large-scale purchases, China Securities Journal reported, citing unidentified people. The move may signal the end of China's equity market slump, it said.