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China shares rise 2.2% in morning trade

(Xinhua)
Updated: 2009-01-16 11:58

Chinese share prices gained 2.2 percent before noon break Friday after the country's State-assets watchdog plans to monitor stake sales of State-owned listed companies.

Investors began to cut stock holdings from late 2008 on concerns that sales of a huge amount of shares by State-owned firms would increase supply and drive down the market.

The benchmark Shanghai Composite Index, which covers both A and B shares, closed the morning trade up 42.88 points, or 2.23 percent, at 1,963.09. It opened 0.45 percent higher at 1,928.92.

It slid 8.66 points, or 0.45 percent, to 1,920.21 points Thursday as investors remained cautious ahead of the release of December's economic data next week.

Gains on Wall Street also contributed to the recovering investor confidence, said analysts.

Overnight the Dow Jones Industrial Average gained 0.15 percent to 8,212.49, compared to the 2.94-percent loss in the previous session.