Shanghai index rises 3.75%, hits two-week high

By Lydia Chen  |   2008-7-9  |     ONLINE EDITION

SHANGHAI'S key stock index rose to the highest in two weeks amid speculation earnings growth is robust enough to withstand government measures to curb inflation.

The Shanghai Composite Index added 3.75 percent, or 105.60 points, to 2,920.55 at 3pm.

Gainers in the Shanghai market outnumbered losers 766 to 55 while three remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was up 3.22 percent, or 27.61 points, to 885.01.

PetroChina, the largest oil producer and biggest heavyweight in the market, surged 3.24 percent to 15.23 yuan (US$2.22) while Sinopec, the biggest oil refiner, gained 4.83 percent to 10.63 yuan.

Poly Real Estate Group Co, China's second-largest developer by market value, and Cosco Shipping Co, a unit of China's biggest shipping company, increased after forecasting higher profits.

Poly Real Estate jumped 8.85 percent to 17.10 yuan. The company said first-half profit may have surged between 220 and 270 percent from a year earlier.

China Vanke Co, the nation's biggest developer, climbed 8.10 percent to 10.01 yuan, on course for its biggest advance since April 25. Gemdale Corp, a Chinese developer that partnered with ING Groep NV, jumped by the 10 percent daily limit to 10.10 yuan.

Cosco Shipping climbed 7.24 percent to 28.73 yuan. Its first-half profit climbed 141 percent from a year earlier, the company said.

A strong profit forecast also helped lift shares of Jinzhou Port Co today.

The port operator in northeastern China said first-half profit may have surged between 100 and 150 percent as fees and cargo volumes expanded. First-half net income in 2007 was 38 million yuan. The share edged up 1.96 percent to 6.75 yuan.