Chinese shares edge up on recovering confidence

(Xinhua)
Updated: 2008-08-28 20:03

BEIJING - Chinese shares edged up on Thursday, comforted by words the country's top market regulator is considering cutting or canceling the stock dividend tax.

The Shanghai Composite Index was up eight points, or 0.34 percent, to close at 2,350.14. In Shenzhen, the market fell 0.13 percent, or 10.11 points, to close at 7,817.05.

Aggregate turnover reached 43.4 billion yuan (US$6.3 billion), slightly lower than 47.2 billion yuan on Wednesday.

Nearly half of the stocks dropped on the two bourses. In Shanghai, 380 stocks rose while 401 fell; in Shenzhen, 351 issues rose while 296 fell.

"The tax-cut policy, once put into action, would attract long-term investment into the market," said Galaxy Securities analyst Li Feng.

Market investors have to pay 20 percent of the dividend income for tax, according to the current regulations.

Oil companies declined amid concerns that the state-set refined oil prices and higher world crude oil prices would pare their earnings.

PetroChina, the country's largest oil company, lost 0.69 percent to 12.97 yuan after reporting fuel price caps and windfall taxes led to a 34.5 percent fall in first half net profit. Sinopec, Asia's top oil refiner, was down 0.79 percent to 10.11 yuan.

Coal producers, however, rose as higher oil prices would increase demand for the alternative fuel, analysts said.

China Shenhua, the country's top coal producer, was up 1.67 percent to 27.35 yuan. Yanzhou Coal Mining Company rose 3.37 percent to 13.79 yuan, while Datong Coal Industry Co. gained 2.29 percent to 15.65 yuan.

Previous page 1 2 Next Page