Shanghai market rises as commodity shares gain

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

SHANGHAI'S key stock index rose for a second-straight day today as commodity-related shares gained after the Shanghai Securities News reported the government will delay the introduction of higher taxes on coal and other resources.

The Shanghai Composite Index added 0.81 percent, or 22.55 points, to 2,814.95 at 3pm.

Gainers in the Shanghai market outnumbered losers 570 to 215 while 34 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 1.23 percent, or 10.45 points, to 857.40.

Beijing Shougang Company Co surged the daily cap of 10 percent to close at 5.17 yuan (75 US cents) while Xinjiang Bayi Iron & Steel Co hiked 6.03 percent to 10.73 yuan.

China Shenhua Energy Co, the nation's largest coal producer, added 3.01 percent to 33.93 yuan. Datong Coal, China's second-largest producer of the fuel by capacity, advanced 4.25 percent to 22.31 yuan. Yanzhou Coal Mining Co, the listed unit of China's fourth-biggest coal miner, rose 5.61 percent to 20.53 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.