Shanghai's key stock index increased this morning, led by a modest rise among blue chips. Gold producers performed strong after international prices of the metal continued to surge.

 

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, added 0.11 percent, or 5.92 points, to 5,490.60 at 11:30am today. The index opened at 5,507.58 at 9:30am today.

 

Winners in the Shanghai market outnumbered losers 546 to 227 and 76 were unchanged.

 

The Shenzhen Composite Index, which covers the smaller mainland stock market, was up 0.71 percent, or 11.06 points, to 1,565.10.

 

Zhongjin Gold Corp, China's largest publicly traded gold miner by market value, added 4.15 percent, or 5.28 yuan (73 US cents), to 132.40 yuan. Shandong Gold Mining Co, the second-largest, gained 4.06 percent, or 8.46 yuan, to 217.05 yuan.

 

Gold for February delivery gained as much as US$2.90, or 0.3 percent, to US$900.60 an ounce and traded at US$896.90 on the Comex division of the New York Mercantile Exchange today.

 

Brokerages also increased this morning.

 

China's securities regulator will encourage more companies to sell shares on domestic stock markets and increase the proportion of free floats for traded companies, Chairman Shang Fulin said Saturday at a conference in Beijing.

 

Citic Securities Co, the nation's biggest brokerage, jumped 3.53 percent, or 3.34 yuan, to 98.07 yuan. Haitong Securities Co, the second-largest, jumped 4.21 percent, or 2.39 yuan, to 59.11 yuan.

 

Banks were mixed in the morning session.

 

Industrial & Commercial Bank of China, the nation's largest bank by assets, lost 0.60 percent, or 0.05 yuan, to 8.25 yuan while China Minsheng Banking Corp, the only listed private Chinese bank, inched up 0.18 percent, or 0.03 yuan, to finish the morning session at 16.25 yuan.

 

China will allow domestic banks to invest in insurance companies, Yuan Li, assistant to the chairman of the insurance regulator said on Saturday.

 

Yuan, speaking at a conference in Beijing, confirmed an earlier report by Caijing magazine, which said three to four banks would be allowed to buy stakes in insurers under a pilot program. The size of possible stakes was not determined, the Beijing-based magazine said, citing unidentified people.

 

(Shanghai Daily January 14, 2008)