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Chinese shares edge up, led by gains in farm, auto issues
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16:43, January 10, 2008

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Chinese shares edged up after intra-day weakness, with agriculture and automobile sectors leading the rise.

The benchmark Shanghai Composite Index closed at 5,456.54 points, up 20.73 points, or 0.38 percent, from the previous close.

The Shenzhen Component Index on the Shenzhen Stock Exchange closed at 18,939.28 points, up 341.67 points, or 1.84 percent.

Aggregate turnover increased to 266.25 billion yuan (about 36.47 billion U.S. dollars) from 213.13 billion yuan.

Power shares were under pressure from government measures announced on Wednesday to stabilize market prices. The measures included price freezes for many forms of energy, including gasoline, natural gas and power.

"Prices of gasoline, natural gas and electricity shall not be adjusted in the near future, and charges for gas, water, heating and urban public transport shall not be raised," a statement from the State Council executive meeting said.

China Yangtze Power, the largest listed hydropower company in mainland market, lost 2.38 percent to 19.71 yuan. China's major power company, GD Power Development, declined 2.34 percent to 17.97 yuan.

Rising domestic and world agricultural product prices supported further gains by farm-related stocks. Shuanghui Investment and Development, a major meat producer, gained 3.33 percent to 61.68 yuan, and sugar maker Guangxi Guitang Group surged 7.84 percent to14.45 yuan.

Faw Car Company, the Shenzhen-listed car-making division of leading automobile manufacturer FAW Group, rose by the daily limit of 10 percent to close at 22.68 yuan.

The steel sector was still on the rise, boosted by optimistic profit estimates and higher steel prices. The National Development and Reform Commission disclosed on Wednesday that nationwide major steel prices were up by an average of more than 4 percent in December.

Handan Iron and Steel rose 4.6 percent to 10.24 yuan, while Baoshan Iron & Steel, China's biggest steelmaker, went up 2.65 percent to 19.37 yuan.

Source:Xinhua



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