Chinese shares up 0.8% as brokerage issues gain

Chinese equities edged up on Wednesday, lifted by gains in brokerage stocks and beneficiaries from the country's economic stimulus plan.

The benchmark Shanghai Composite Index rose 0.84 percent, or 15.50 points, to 1,859.11. The Shenzhen index gained 0.28 percent, or 16.91 points, to 6,116.67 points.

Combined turnover fell to 60.419 billion yuan (US$8.85 billion) from Tuesday's 83.214 billion yuan.

The market opened lower on worries over a slowing economy and a sell-off on Wall Street. But shares rebounded, especially those of brokers, which gained on reports that securities firms would launch a trial of short-selling and margin lending involving clients with total assets above 1 million yuan.

Hongyuan Securities advanced 9.26 percent to 12.44 yuan. Northeast Securities finished at 12.44 yuan, up 5.33 percent.

Analysts said the gains by brokers helped other financial issues rise.

China Merchants Bank rose 1.19 percent to 13.58 percent. Shanghai Pudong Development Bank gained 2.6 percent to 14.18 percent.

Cement shares and building materials continued the gains that began on Monday in reaction to China's 4-trillion-yuan stimulus program.

Fujian Cement rose by the daily limit of 10 percent to close at 4.16 yuan. Hebei Taihang Cement moved up 9.95 percent to 4.20 yuan.

The Railway Ministry pledged on Wednesday to finish 50 billion yuan in investments this year, while the Transport Ministry pledged to complete 800 billion yuan in investments.

Media stocks performed well on news that Beijing CCID Media Investments Co. would increase the registered capital of its subsidiary company to 97 million yuan from the current 10 million yuan. China Sunshine Media rose by the daily limit of 10 percent to 4.57 yuan.

(Xinhua News Agency November 12, 2008)