Coal producers push index higher at midday

By Lydia Chen  |   2008-7-8  |     ONLINE EDITION

SHANGHAI'S key stock index rose slightly in the morning session today. Coal producers led the gains after the Shanghai Securities News reported that the government will delay the introduction of higher taxes on coal and other resources.

The Shanghai Composite Index edged up 0.17 percent, or 4.68 points, to 2,797.07 at 11:30am.

Losers in the Shanghai market outnumbered gainers 471 to 318 while 30 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 0.12 percent, or 1.03 points, to 847.97.

China Shenhua Energy Co, the nation's largest coal producer, added 3.22 percent to 34 yuan (US$4.96). Datong Coal, China's second-largest producer of the fuel by capacity, advanced 3.74 percent to 22.20 yuan. Yanzhou Coal Mining Co, the listed unit of China's fourth-biggest coal miner, rose 4.89 percent to 20.39 yuan.

The government may delay the introduction of higher taxes on coal and other resources on concerns about inflation, the Shanghai Securities News reported, citing an unnamed source familiar with the situation. A proposed tax increase submitted to the State Council has yet to receive approval, the report said today, adding it won't be introduced within the next three months.

Lvjing Real Estate Co surged 9.95 percent to 6.41 yuan. The developer said first-half profit probably surged 10-fold from a year earlier on higher sales and margins, according to a statement to the Shenzhen Stock Exchange today. Net income was 2.8 million yuan in the first half of 2007.

Shanghai AJ Corp jumped the daily cap of 10 percent to finish the session at 10.90 yuan. Shougang Holding (Hong Kong) Ltd agreed to buy 120 million shares in Shanghai AJ. Shougang Holding will form a venture with Hong Kong tycoon Li Ka-Shing to buy the shares, Shanghai AJ said in a statement to the city's stock exchange today, without giving a price.