Chinese shares rise slightly

Special
Report: Global Financial Crisis

BEIJING, May 7 (Xinhua) -- Chinese shares rose slightly Thursday after the central bank pledged to maintain ample liquidity in the financial system on the previous night.

The benchmark Shanghai Composite Index rose 0.19 percent, or 4.93 points, to close at 2,597.45 Thursday. The Shenzhen Component Index, however, fell 0.4 percent, or 40.13 points, to 10,108.94.

Losers outnumbered gainers by 583 to 336 in Shanghai, and 508 to 280 in Shenzhen.

Combined turnover surged to 269.3 billion yuan (40.13 billion U.S. dollars) from 236.2 billion yuan on the previous trading day.

The central bank said Wednesday the government would stick to its moderately easy monetary policy, ensure ample liquidity at banks and continue to instruct financial institutions to extend new loans despite the earlier credit surge.

Encouraged by the news, banking sector rose an average of 2.05 percent. Bank of Nanjing and Shenzhen Development Bank both increased by more than 4 percent.

Industrial and Commercial Bank of China, the largest lender by market value, was up 0.94 percent to close at 4.28 yuan, and the China Construction Bank advanced 1.99 percent to 4.61 yuan.

Steel, alternative energy and non-ferrous metal sectors rose by more than 1 percent as the State Council, or the Cabinet, announced Wednesday the government would earmark 20 billion yuan to support technological upgrading in these industries. The allocation was expected to attract 460 billion yuan of private-sector investment.

Fujian-based Sansteel Minguang jumped by almost the 10-percent daily limit to close at 10.91 yuan. Xinjiang Ba Yi Iron Steel rose 5 percent to 9.24 yuan and Laiwu Steel Corp. 4.39 percent to 9.04 yuan.

In the non-ferrous sector, Yunnan Copper surged 3.14 percent to close at 21.02 yuan, and Zijin Mining, the nation's largest gold producer, edged up 0.45 percent to 8.93 yuan.