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Chinese shares rose on banks' earnings growth

SHANGHAI'S key stock index edged up in the morning session led by financial shares as they reported better-than-expected earnings for the first half.

The benchmark Shanghai Composite Index rose 0.73 percent, or 21.16 points, to close at 2,932.74 points. Turnover was 73.7 billion yuan(US$10.8 billion). Gainers outnumbered losers 630 to 197 and 83 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, rose 1.28 percent to close at 968.81 points.

"The index is likely to move between 2,900 and 3,000 points today and it is too early to say the market has entered a rebounding period as investors may be eager to take profit," Guosen Securities wrote in a research note.

Banks were among the gainers as an increase of new loans in the first half boosted their profits. Industrial & Commercial Bank of China, the nation's biggest listed lender, said it posted a net income of 31.4 billion yuan for the first half on record credit growth and lower provisions for bad loans as the economy rebounded. The shares rose 2.32 percent to 4.86 yuan.

Shenzhen Development Bank said first half profit rose 7.8 percent year on year with higher income from fee-based services. Its shares rose 2.32 percent to 22.06 yuan.

Shanghai Pudong Development Bank added 1.53 percent to 22.59 yuan. China Construction Bank advanced 2.65 percent to close at 5.81 yuan. Bank of Communications edged up 0.54 percent to 9.24 yuan.

Pacific Securities Co reported a first-half net profit of 206 million yuan compared with a year-earlier loss of 447 million yuan. The stock remained almost unchanged at 16.27 yuan.

Property developers were also among the gainers. China Vanke Co, the biggest listed domestic real estate developer, added 0.80 percent to 11.37 yuan. Poly Real Estate Group advanced 2.24 percent to 25.15 yuan. China Merchants Property Development Co Ltd jumped 2.24 percent to 25.15 yuan.


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