Shanghai Daily news

Shanghai shares rose yesterday after media reports said overseas investors showed confidence in the prospects of China's capital sector at the Fortune Global Forum in Beijing, fuelling optimism of a funds influx.
"It's a stimulus to the industry that foreign institutions are bullish on the market in the long term," said Zhang Li, a Huatai Securities Co analyst. "The government is likely to raise investment quotas soon."
The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares, gained 0.30 percent to 1,102.96. The A-share Index added 0.31 percent to 1,157.67 and the B-share Index dipped 0.05 percent to 69.57.
The development of China's securities markets is going in the right direction and at a proper pace, the China Securities Journal said, citing Kevan Watts, chairman of Merrill Lynch & Co.
The investment cap for qualified foreign institutional investors, or QFII, is likely to rise to US$10 billion from US$4 billion if the State Council endorses a proposal by the foreign exchange regulator, earlier media reports said.
China Yangtze Power, owner of the world's biggest hydropower project, powered 2.12 percent to 7.70 yuan (92.77 US cents). The utility's 400 million shares sold to strategic investors in 2003 started trading yesterday after an 18-month lock-up period.