Shanghai Daily news

Shares in Shanghai edged up yesterday after the market hit the nadir for two consecutive sessions as many overseas institutions considered the reform in China's stock markets is undergoing a milestone, sparking optimism over the future.
The Shanghai Composite Index, which groups both yuan-denominated A shares and hard-currency B shares, added 0.33 percent to 1,107.63. The A-share Index also rose 0.33 percent to 1,162.54, and the B-share Index climbed 0.3 percent to close at 69.97.
"The reform may cause fluctuation in stocks in the short term, but it's an inevitable trend if we want to see a bigger development in the share markets," said Wei Wei, a trader with West China Securities Co Ltd.
The program to tackle the nontradable shares existing in the listed companies for a long time will create favorable conditions for the sound development of the country's stock markets, said some foreign investment banks.
The trial implementation of the reform has boosted the attractiveness of the A-share market, Credit Suisse First Boston said in its research report. Morgan Stanley said the sale of nontradable shares will help improve the governance of companies, which will protect the interests of small shareholders.
Tsinghua Tongfang Co, a computer service provider, jumped to the daily trading limit by 10 percent.