Shanghai Daily news

Shares in Shanghai dipped yesterday after a news report said China may further raise interest rates of yuan-denominated deposits and lending this year to soothe inflation pressure.
The Shanghai Composite Index, which covers yuan-denominated A shares and foreign-currency B shares, slid 0.38 percent to 1,099.27. The A-share Index withdrew 0.38 percent to 1,153.78 and the B-share Index lost 0.52 percent at 69.41.
"The country currently faces challenges including rising prices of raw materials," the Beijing Times reported, citing Liu Weiming, chief foreign exchange analyst at China Merchants Bank Co. "The central bank will probably raise key local currency rates by about 25 basis points in the second half of the year."
Since China has adopted a "balanced" strategy in its monetary policies, a rise in renminbi interest rates is highly probable after the government lifted the benchmark US dollar deposit rate by a quarter percentage point on Thursday, Liu was quoted as saying.
China on October 29 raised interest rates of yuan-denominated savings and loans for the first time in nine years to curb inflation and put the brakes on growth.
China United Telecommunications Corp shed 0.40 percent to 2.52 yuan (30.4 US cents). China Petroleum & Chemical Corp, Asia's biggest oil refiner, dived 1.55 percent to 3.80 yuan.